CHINA’S exports and imports fell more than expected in April, underlining weak demand at home and abroad and cooling hopes of a recovery in the world’s second-largest economy.
Exports fell 1.8 percent from a year earlier, the General Administration of Customs said Sunday, reversing the previous month’s brief recovery and supporting the government’s concerns that the foreign trade environment will be challenging in 2016.
April imports dropped 10.9 percent from a year earlier, falling for the 18th consecutive month, suggesting domestic demand remains weak despite a pick-up in infrastructure spending and record credit growth in the first quarter.
“Both exports and imports came in weaker than expected, in line with the soft trade performance across Asia, pointing to another challenging year for emerging markets,” said Zhou Hao, senior emerging market economist at Commerzbank in Singapore.
China’s exports to the United States — the country’s top export market — fell 9.3 percent in April from a year earlier, while shipments to the European Union — the second biggest market, rose 3.2 percent, customs data showed.
The government has vowed to take steps to boost exports, including encouraging banks to boost lending, expanding export credit insurance and raise tax rebates for some firms.
China had a trade surplus of US$45.56 billion in April, versus forecasts of US$40 billion.
China’s economic growth slowed to 6.7 percent in the first quarter — the weakest since the global financial crisis, but activity picked up in March as policy steps to boost the economy, including six interest rate cuts since late 2014, seemed to be taking effect.
Concerns of a hard-landing in China had eased after the strong March data, but analysts have warned the rebound may be short-lived.
Economists expect a slowdown in credit growth and industrial production in April although inflation could accelerate. Key economic data are expected over the next two weeks.
(SD-Agencies)
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