Saturday 11 August 2012

CHINA’S EXPORT GROWTH IN JULY: 1%

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CHINA TRADE SLOWS AMID GLOBAL WEAKNESS

Economists say central bank could ease monetary policy as early as this weekend

Today, August 11, 2012

BEIJING - China's trade and domestic demand have weakened even faster than expected, adding to pressure on Beijing for a more aggressive stimulus to boost the world's second-largest economy out of its worst slump since the 2008 crisis.

According to data released yesterday, China's export growth in July plunged to just 1 per cent from the previous month's 11.3 per cent, well below forecasts of about 5 per cent.

Besides China, weak second quarter gross domestic product (GDP) figures from Hong Kong and Singapore showed that Europe's debt crisis and the broader global downturn are taking a growing toll on the region, even as governments respond with extra spending and lower lending rates.

Other reports this month from economies including India, South Korea and Taiwan underlined the challenges the export-reliant region is facing.

"Given this backdrop, the 1 per cent from China merely reconfirmed that the severe headwind from the euro zone crisis and the United States slowdown is blowing harder," said Societe Generale economist Yao Wei.

Some economists say China's central bank could move as early as this weekend to ease monetary policy. It has reduced banks' required reserve ratio (RRR) in three steps since November to free up an estimated 1.2 trillion yuan (S$235 billion) for new lending and cut interest rates in June and July.

(...) [artículo aquí]

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