Published By : 08 Sep 2015 | Published By : QYRESEARCH
As reported earlier in Hong Kong today, Chinese exports and imports are contracted. This was the most recent sign of drawbacks in August in the world’s second-biggest economy.
According to the customs data posted online on Tuesday, the shipments of goods decreased 5.5% last month. This decrease was in terms of dollars as compared to a year earlier. However, the imports also tumbled by 13.8 percent.
The trade growth is also expected to improve over the next few months due to the figures seen in August. They were hit by disruption from the massive explosion at a chemical plant in Tianjin port. The figures were also disrupted due to the government enforcement factory shutdowns in the run-up to a huge military parade in Beijing last week.
The trade data in the recent weak indicators will add further pressure on China’s communist leaders. Some of the country’s legions of manufacturers related to export-orientation boosted the country’s economy. However, the growth is stalling among weakening global demand.
In this manner, the economy will be stalled from growing rapidly and shed many jobs. The manufacturing industry’s woes are intensified by Beijing’s efforts to guide the economy away from investment and trade toward self-sustaining and slower domestic consumption.
The recent numbers come after a higher 8.3% decline in the July exports and many other declines of other downbeat data, factory purchasing, investment, industrial production, and retail sale.
The total exports amounted $196.8 billion last month and imports were $136.6 billion, leaving a surplus of $60.2 billion.
The economic growth in China was steady at 7% in the most recent quarter. However, doubts regarding that Beijing can maintain the rate for the full year are growing and were manifested in market turmoil last month.
The policymakers in Beijing have reduced interest rates five times since November with the most recent cut coming in late August.