China’s Export Growth Slows Amidst Declining Global Demand

SadaNews - China’s export growth slowed in August more than expected, affected by weak external demand and declining prices, which reduced the value of shipments despite an increase in quantities.

According to data from the General Administration of Customs released on Monday, sales abroad rose by 4.4% compared to the same month last year, which is below analysts’ expectations of a 5.5% growth. In contrast, imports increased by 1.3%, resulting in a trade surplus of $102 billion.

Record Trade Surplus Despite Slowdown

Despite this slowdown in export growth, China is still on track to record a trade surplus that exceeds last year's record figure of around $1 trillion, as external sales help compensate for weak domestic demand.

However, rising revenues do not necessarily reflect on corporate profitability, as data showed that industrial sector profits declined by about 2% during the first seven months of the year, under pressure from falling prices and fierce competition in global markets.

New export order indicators in China have shown weak performance for several months, which portends further declines in external demand in the forthcoming period due to a global economic slowdown and ongoing pressures on supply chains and prices.