China Export Decline Worse Than Expected
(RTTNews) - China's exports declined more than expected in October due to the lackluster global demand, while imports rebounded unexpectedly, leading to a narrower the trade surplus.
The annual decline in exports worsened to 6.4 percent in October from 6.2 percent in September, the General Administration of Customs said Tuesday.
This was much bigger than the expected drop of 3.3 percent and marked the sixth consecutive decline.
On the other hand, imports grew 3.0 percent from a year ago, reversing a 6.2 percent drop in September. The gain confounded expectations for an increase of 4.8 percent.
The trade surplus unexpectedly fell to $56.5 billion in October from $77.7 billion in September. The surplus was seen at $82.0 billion.
Chinese exports are set to decline over the coming months before bottoming around the middle of next year, Capital Economics economist Julian Evans-Pritchard said.
As most advanced economies are likely to undergo either mild recessions or weak GDP growth in the near term, this will weigh on demand for their foreign goods, the economist observed.
Imports are expected to grow more slowly going forward as a third of that are intermediate goods, which is used in the export sector, Evans-Pritchard said.
An expected moderate recovery in domestic demand may not provide much uplift to fuel imports, the economist added.
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