China Watch: Exports To Remain Flat, Imports Fall This Year

Exports this year are expected to remain generally flat while imports may fall substantially, according to a Ministry of Commerce report released Thursday.

Foreign-trade growth fared well with a smaller drop than the global average and most major economies, the report pointed said.

For the 1st 3 Quarters, foreign trade dropped 7.9% Y-Y to RMB 17.87-T (US$2.82-T), with exports down 1.8% to RMB 10.24-T, and imports down 15.1% to RMB 7.63-T. The trade surplus surged by 82.1% to RMB 2.61-T.

The report said the drops were due to the sluggish global economy, high costs and slumping commodity prices, citing data from the World Trade Organization (WTO) that showed global exports dropped 10.9% Y-Y in the 1st 7 months.

China will face complex global conditions, subdued international market demands, a weakening of its traditional competitive edge and increasing trade frictions in Y 2016, according to the report.

However, China is likely to post faster growth than the global average and hold a bigger share of the international market thanks to opening-up policies such as the Belt and Road Initiative and economic restructuring, according to the report.

Stay tuned…

HeffX-LTN

Paul Ebeling

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