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China Exports Log Double-Digit Decline In July
(RTTNews) - China's exports logged another sharper-than-expected double digit decline in July as monetary policy tightening damped demand from major trading partners, official data showed on Tuesday.
Shipments declined 14.5 percent in July from a year ago, following June's 12.4 percent fall, the General Administration of Customs reported. The pace of decrease also exceeded economists' forecast of 12.5 percent drop. Moreover, this was the biggest decline since the onset of the pandemic.
At the same time, imports slid 12.4 percent annually, much bigger than both the 6.8 percent drop in June and the expected decrease of 5.0 percent. As a result, the trade surplus rose to $80.6 billion from $70.6 billion in the previous month. The surplus was forecast to remain broadly unchanged at $70.6 billion in July.
Exports to the EU decreased 20.6 percent and that to the US plunged 23.1 percent in July. Further, shipments to Association of Southeast Asian Nations, or ASEAN, were 21.4 percent lower than in July 2022.
Economists at Capital Economics said the fall in exports largely reflect lower prices rather than volumes in July.
However, the strength in exports is unlikely to be sustained given wider evidence of falling global demand as pandemic distortions unwind and monetary tightening weighs on consumer spending, they said.
Although domestic demand softened recently, economists said the policy support would help to reverse some of this weakness in the coming months.
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