China’s exports fell in June due to worsening economic problems
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China’s exports have suffered their biggest year-on-year decline since the start of the coronavirus pandemic, raising concerns about the world’s second-largest economy’s growth trajectory.
June exports fell 12.4% year-on-year in dollar terms, the biggest drop since February 2020, according to official data on Thursday. Economists polled by Reuters had expected a 9.5% decline.
Imports fell 6.8%, also better than expected. Exports and imports fell 7.5% and 4.5%, respectively, in May.
China’s exports this year have been hit by weak international demand at a time when the economy has already been weighed down by a slump in the property sector and a disappointing recovery after COVID-19 restrictions were lifted earlier in the year. .
Youth unemployment is also at its highest level since China began providing data in 2018, but weak consumer demand is putting the country at risk. Brink of deflation.
“China must rely on domestic demand,” said Zhiwei Zhang, president of Pinpoint Asset Management. “The big question in the coming months will be whether domestic demand can recover without massive government stimulus.”
The General Administration of Customs said on Thursday that trade growth was facing “relatively great pressure”, citing economic and geopolitical risks. China’s yuan-denominated exports increased 3.7% in the first half of the year, it said.
Gross domestic product data due to be released on Monday will further reveal the health of the nation. china economy. The government has set an official growth target of 5% for the full year, the lowest level in decades, after growing just 3% in 2022. Premier Li Qiang said last month that second-quarter results would outperform the first. rate is 4.5 percent.
Chinese policymakers have so far avoided a large stimulus package, instead easing key interest rates last month to support growth. It also introduced prudent measures to help the real estate industry, which accounts for more than a quarter of economic activity but is plagued by a wave of defaults.
This week’s inflation data shows the country is on the brink of consumer price deflation, suggesting domestic spending remains subdued months after the coronavirus measures were abandoned. Factory prices are already in negative territory.
China’s exports, which initially declined, surged in the early stages of the pandemic as consumption in other countries shifted from services to goods. Official data often reflect double-digit percentage increases.
Thursday’s figures showed a reversal, with sharp declines across categories including mobile phone, computer, steel and clothing exports.
One exception was motor vehicle exports, which increased $4.1 billion compared to the same period last year.
Exports to Russia and Singapore also increased in dollar terms, but goods to other major countries fell.
Summarize this content to 100 words Receive Free China Trade UpdatesI will send myFT Daily Digest E-mail summarizing the latest information china trade News every morning.
China’s exports have suffered their biggest year-on-year decline since the start of the coronavirus pandemic, raising concerns about the world’s second-largest economy’s growth trajectory.June exports fell 12.4% year-on-year in dollar terms, the biggest drop since February 2020, according to official data on Thursday. Economists polled by Reuters had expected a 9.5% decline.Imports fell 6.8%, also better than expected. Exports and imports fell 7.5% and 4.5%, respectively, in May.China’s exports this year have been hit by weak international demand at a time when the economy has already been weighed down by a slump in the property sector and a disappointing recovery after COVID-19 restrictions were lifted earlier in the year. .Youth unemployment is also at its highest level since China began providing data in 2018, but weak consumer demand is putting the country at risk. Brink of deflation.”China must rely on domestic demand,” said Zhiwei Zhang, president of Pinpoint Asset Management. “The big question in the coming months will be whether domestic demand can recover without massive government stimulus.”
A snapshot of an interactive graphic is shown. This is most likely due to being offline or having JavaScript disabled in your browser.
The General Administration of Customs said on Thursday that trade growth was facing “relatively great pressure”, citing economic and geopolitical risks. China’s yuan-denominated exports increased 3.7% in the first half of the year, it said.Gross domestic product data due to be released on Monday will further reveal the health of the nation. china economy. The government has set an official growth target of 5% for the full year, the lowest level in decades, after growing just 3% in 2022. Premier Li Qiang said last month that second-quarter results would outperform the first. rate is 4.5 percent.Chinese policymakers have so far avoided a large stimulus package, instead easing key interest rates last month to support growth. It also introduced prudent measures to help the real estate industry, which accounts for more than a quarter of economic activity but is plagued by a wave of defaults.
A snapshot of an interactive graphic is shown. This is most likely due to being offline or having JavaScript disabled in your browser.
This week’s inflation data shows the country is on the brink of consumer price deflation, suggesting domestic spending remains subdued months after the coronavirus measures were abandoned. Factory prices are already in negative territory.China’s exports, which initially declined, surged in the early stages of the pandemic as consumption in other countries shifted from services to goods. Official data often reflect double-digit percentage increases.
A snapshot of an interactive graphic is shown. This is most likely due to being offline or having JavaScript disabled in your browser.
Thursday’s figures showed a reversal, with sharp declines across categories including mobile phone, computer, steel and clothing exports.One exception was motor vehicle exports, which increased $4.1 billion compared to the same period last year. Exports to Russia and Singapore also increased in dollar terms, but goods to other major countries fell.
https://www.ft.com/content/ddffbe32-7ddd-4de1-8d72-589e2417c386 China’s exports fell in June due to worsening economic problems