China’s Export Growth Falls Short of Expectations
China: China’s export growth in dollar terms fell short of expectations last month, signaling potential risks to policymakers who heavily rely on trade to counter a sluggish domestic economy. In contrast to the weak export performance, imports surged significantly, reversing previous declines as industries acquired machinery and capital goods to support increased investment. Official data from China’s General Administration of Customs shows that exports rose 7 percent year-on-year in July, compared to an 8.6 percent increase in June. This was below the 9.7 percent growth forecasted by a Reuters poll of analysts. Imports, however, jumped 7.2 percent, surpassing the 3.5 percent growth predicted by Reuters and recovering from a 2.3 percent year-on-year decline in June.
China’s economy has relied on trade and industrial output to mitigate the impacts of a prolonged real estate downturn and strained local government finances, which have dampened consumer confidence and household spending. Investor sentiment has also been affected by government crackdowns and Beijing’s preference for incremental rather than substantial stimulus measures to achieve its 5 percent economic growth target.
Source: Official data from China’s General Administration of Customs