Chinese trade growth slows siginificantly

Discussion in 'Economics' started by ASusilovic, Oct 13, 2011.

  1. Growth in Chinese trade slowed significantly last month as the world’s second-largest economy began to feel the effects of the economic turmoil hitting its most important trading partners in Europe and the US.

    Exports increased 17.1 per cent overall in September from a year earlier, down from a 24.5 per cent increase in August and well below most forecasts, according to data released by Chinese customs on Thursday.

    Imports also slowed down. They increased by 20.9 per cent from a year earlier, compared with August’s 30.2 per cent rise.

    Many of China’s imports are components such as computer chips or raw materials that are re-exported as finished goods,. Slowing imports, therefore, can signal future declines in exports.

    The slowdown was particularly apparent in Chinese trade with crisis-hit Europe, with exports rising just 9.8 per cent in September from a year earlier, compared with a 22.3 per cent rise in August.