Chinese exports and imports rise more than expected

Beijing – Growth in Chinese exports and imports rose more than expected in July, a sharp recovery from the previous month.

Beijing – Growth in Chinese exports and imports rose more than expected in July, a sharp recovery from the previous month.

Chinese exports rose 5.1 per cent compared with a year earlier while imports gained 10.9 per cent. The rises were large swings from June’s data, which showed exports had fallen 3.1 per cent and imports had dropped 0.7 per cent.

Last month, the government reiterated its 7.5 per cent economic growth target for this year, after expansion slowed in the second quarter.

The July data meant the trade surplus narrowed to $17.8b, down from June’s $27.1b. Analysts said the results were surprisingly good, but warned against being too optimistic.

“July seems to reflect a return to a ‘normal’, relatively uninspiring trend after a weak June, rather than the beginning of an acceleration in growth,” said Alaistair Chan from Moody’s Analytics in a report. “While the worst seems to be over, the upturn will be relatively flat.”

China has seen its manufacturing and exports sector slow in the wake of the global financial crisis that has sapped demand for its products. These sectors were the main drivers of the economy for China through its years of blistering growth. In June, China saw export growth decline for the first time in 17 months.

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