China’s Exports Decline for Ninth Month on Weak Global Demand

Discussion in 'Wall St. News' started by ASusilovic, Aug 11, 2009.

  1. Aug. 11 (Bloomberg) -- China’s exports fell for a ninth month on weak global demand, reinforcing the government’s case for sticking with a “moderately loose” monetary policy to fuel domestic growth.

    Overseas sales dropped 23 percent in July from a year earlier, the customs bureau said today on its Web site. That matched the median estimate in a Bloomberg News survey of 23 economists. Exports fell 21.4 percent in June.

    Premier Wen Jiabao reiterated on Aug. 9 that monetary policy and a “proactive” fiscal stance will remain unchanged because of problems including sliding export demand and industrial overcapacity. China, the world’s second-biggest exporter, has stalled gains by the yuan against the dollar, increased tax rebates and boosted trade finance to aid exporters.

    China’s exports and imports may “further stabilize and start to recover in the coming months as the extreme uncertainties that froze orders earlier on fade,” said Wang Tao, an economist at UBS AG in Beijing. “Towards the end of 2009, we expect exports to recover on rebounding consumer demand, even though from a lower level.”

    This is supported by Baltic Dry Index

    and by Dry Cargo Shipments

    So who is hoping for a V recovery ? Goldman ? Good luck !