Arab Today, arab today china april exports down 64 in new sign of weakness
Last Updated : GMT 08:44:49
Arab Today, arab today
Arab Today, arab today

China April exports down 6.4% in new sign of weakness

Arab Today, arab today

Arab Today, arab today China April exports down 6.4% in new sign of weakness

Vehicles waiting to be exported
Beijing - AFP

China's exports fell unexpectedly in April as imports posted their sixth straight monthly decrease, official data showed Friday, with analysts calling for more stimulus to bolster the world's second-largest economy.

The country's exports dropped 6.4 percent year-on-year in April to $176.3 billion, the customs authority said -- well below the median forecast of a 0.9 percent rise in a Bloomberg News poll of economists.

The fall was accompanied by a 16.2 percent drop in imports to $142.2 billion, the sixth monthly decline in a row, suggesting sustained weakness in domestic demand.

The export and import figures for April showed a trade surplus of $34.1 billion, Customs said, compared with $18.5 billion a year ago.

Analysts said the disappointing figures reflected persistent frailty in the Chinese economy and provided more evidence that further policy loosening is needed.

"The trade data indicate that current growth momentum remains soft, calling for more monetary policy easing," Nomura economist Zhao Yang said in a note.

China's gross domestic product (GDP) expanded by 7.4 percent in 2014, the lowest rate in nearly 25 years.

Growth slowed further to 7.0 percent in the January-March period, the worst quarterly result in six years and down from 7.3 percent in the final three months of 2014.

More recent data showed the downturn may have extended into the second quarter.

British bank HSBC's purchasing managers' index, which tracks activity in China's factories and workshops, recorded its worst contraction in a year in April as subdued domestic demand continued to weigh on growth, it said this week.

Chinese leaders have said they are ready to accept slower but more sustainable expansion, as they try to transform an investment-driven growth model to one in which consumers take centre stage.

But authorities have stepped up stimulus efforts since late last year in a bid to ensure the slowdown does not get out of hand.

The central People's Bank of China has cut interest rates twice since November and reduced two times the amount of cash banks must keep in reserve, along with other measures to inject liquidity into the market.

 

- 'Strong headwinds' -

 

April's trade figures followed a 15.0 percent year-on-year decrease in exports in March, and a 3.3 percent drop in January.

February overseas shipments increased by 48.3 percent, mainly due to seasonal distortion around the Lunar New Year holiday.

ANZ economists expected prolonged difficulties ahead for international commerce as other industry-related data remain weak.

"As the port throughput data remain soft, we continue to see strong headwinds in China's trade sector in the foreseeable future," they said in a report.

Authorities are expected to introduce incentives such as tax cuts and more interest rate reductions, ANZ said.

"It is likely that China needs to add targeted stimulus on both fiscal and industrial sectors."

Beijing cut its trade growth target for this year to about 6.0 percent, from the 7.5 percent goal set for last year.

Actual trade expanded 3.4 percent in 2014, the third consecutive time the annual target was missed.

Julian Evans-Pritchard, an economist with research firm Capital Economics, cautioned that unlike previous weakening in imports caused by falling commodity prices, April's contraction was "at least partly driven" by lower incoming volumes, suggesting "the ongoing slowdown in investment, particularly property, has further weighed on domestic demand".  

But he was optimistic about the outlook for Chinese trade, citing likely stable demand in foreign markets and a recovery in international commodity prices.

"We expect negative export growth to prove short lived," he wrote in a note.

But while slowing investment growth will remain a drag, he said, import growth should begin to gradually recover as the price of many key commodities "appears to have bottomed out".

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china april exports down 64 in new sign of weakness Arab Today, arab today china april exports down 64 in new sign of weakness

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china april exports down 64 in new sign of weakness Arab Today, arab today china april exports down 64 in new sign of weakness

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday