China's Trade Surplus Widens In July
08 August 2017 - 3:42AM
RTTF2
China's trade surplus increased in July despite a slowdown in
exports growth, official data showed Tuesday.
Exports increased 7.2 percent year-on-year in July, the General
Administration of Customs reported. Shipments were forecast to
advance 11 percent after climbing 11.3 percent in June.
At the same time, imports grew 11 percent but weaker than June's
17.2 percent expansion. Economists had forecast a faster growth of
18 percent.
Consequently, the trade surplus widened to $46.7 billion in July
from $42.7 billion in June. This was also above the expected level
of $45 billion.
In yuan terms, exports rose 11.2 percent and imports advanced
14.7 percent. As a result, the trade surplus totaled CNY 321.2
billion in July compared to the forecast of CNY 293.5 billion.
Looking ahead, Julian Evans-Pritchard at Capital Economics said
further downside to export growth should be relatively limited
given the positive outlook for China's main trading partners.
But with the headwinds to domestic demand from policy tightening
increasing, the slowdown in import growth has further to run, the
economist said.
Trade data came a day after Fitch Ratings upgraded its global
growth outlook citing more pronounced recovery in emerging markets
and China in particular.
The recent slowdown in Chinese credit growth is likely to weigh
on housing demand in 2018 but housing starts have been holding up
well, Brian Coulton, Fitch's chief economist, said.
Moreover, export demand has shown a clear improvement this year.
Although Fitch expects a slowdown, the 2017 and 2018 China GDP
growth forecasts have been revised up by 0.2 percentage point to
6.7 percent and 0.4 percentage point to 6.3 percent,
respectively.
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