China’s economic outlook uncertain as imports slump
China’s exports fell less than expected in September, with monthly figures showing recovery, but a sharper fall in imports left economists divided over whether the country’s ailing trade sector is showing signs of turning around, Reuters reported.
On the surface, the trade data on Tuesday reinforced views that the world’s second-largest economy is still slowly losing momentum, putting more pressure on Beijing to roll out further stimulus measures and keeping global markets on edge.
But the numbers did not suggest a greater risk of a hard landing, as some investors have feared.
Exports in September fell 3.7 percent from the same period last year, less than the 6.3 percent drop forecast by economists in a Reuters poll and moderating from a 5.5 percent decline in August.
However, imports by value tumbled for the 11th straight month, losing over 20 percent year-on-year in September due to weak commodity prices and soft domestic demand, which will continue to complicate Beijing’s efforts to stave off deflation.
Last month, a Chinese delegation visited Iowa to sign contracts to purchase $5.3 billion in soybeans and health products. China’s purchase of 13.8 million metric tons of soybeans amounted to nearly the entire annual average yield for the state.
China was Iowa’s fourth-largest export market last year, accounting for nearly $950 million of food and fuel. This year, Iowa is on pace to export even more goods than last year, moving China into third place.
Trending News
