Press Trust of India / Beijing August 10, 2011
China reported faster-than-expected growth in exports, imports and its trade surplus in July, but analysts said the picture could become worse in the coming months amid uncertainty in the global economy triggered by the US debt crisis and escalating inflation.
China's trade surplus rose sharply to $31.48 billion in July from $22.27 billion in June and $28.7 billion in the same month a year ago.
Exports rose 20.4% year-on-year in July to reach $175.128 billion, a new record, China's General Administration of Customs (GAC) said.
Imports also increased by 2.9% to $143.64 billion in July. China's imports had registered a growth rate of 19.3% in June.
The readings suggest that both China's export competitiveness and domestic demand are in relatively good shape, Bank of America-Merrill Lynch economist Lu Ting said.
Exports to the European Union (EU) and Japan rose by 22.3% and 27.2% year-on-year in July from 11.4% and 20% in June.
Growth in overseas shipments to the United States stood at 9.5% in July, 2011, down slightly from 9.8% in June, but down significantly from the average 13.3% growth rate witnessed in the second quarter and 21.4% in the first quarter, which indicated the US weakness has been weighing on its imports from China, Xinhua quoted Lu as saying.
The pain of the external turmoil will gradually be felt by Chinese exporters during the rest of the year, as the sovereign debt crisis in the EU and credit downgrade in the United States has generated more uncertainty about the recovery of the global economy, analysts said.
According to Lu, China's export and import growth will slow to 16% and 23%, respectively, in the second half of this year from 24% and 27.6% in the first half.
The trade surplus will increase to $97.2 billion, up from $46 billion in the first half.
Import growth will trend down on the back of declining commodity prices and soft landing of the domestic economy, he said.
On the domestic front, China's inflation rate accelerated to 6.5%, a 37-month high, in July on surging food costs, while its Producer Price Index (PPI), a major measure of inflation at the wholesale level, rose by 7.5% amid deepening worries over the downgrade of US debt.
China reported faster-than-expected growth in exports, imports and its trade surplus in July, but analysts said the picture could become worse in the coming months amid uncertainty in the global economy triggered by the US debt crisis and escalating inflation.
China's trade surplus rose sharply to $31.48 billion in July from $22.27 billion in June and $28.7 billion in the same month a year ago.
Exports rose 20.4% year-on-year in July to reach $175.128 billion, a new record, China's General Administration of Customs (GAC) said.
Imports also increased by 2.9% to $143.64 billion in July. China's imports had registered a growth rate of 19.3% in June.
The readings suggest that both China's export competitiveness and domestic demand are in relatively good shape, Bank of America-Merrill Lynch economist Lu Ting said.
Exports to the European Union (EU) and Japan rose by 22.3% and 27.2% year-on-year in July from 11.4% and 20% in June.
Growth in overseas shipments to the United States stood at 9.5% in July, 2011, down slightly from 9.8% in June, but down significantly from the average 13.3% growth rate witnessed in the second quarter and 21.4% in the first quarter, which indicated the US weakness has been weighing on its imports from China, Xinhua quoted Lu as saying.
The pain of the external turmoil will gradually be felt by Chinese exporters during the rest of the year, as the sovereign debt crisis in the EU and credit downgrade in the United States has generated more uncertainty about the recovery of the global economy, analysts said.
According to Lu, China's export and import growth will slow to 16% and 23%, respectively, in the second half of this year from 24% and 27.6% in the first half.
The trade surplus will increase to $97.2 billion, up from $46 billion in the first half.
Import growth will trend down on the back of declining commodity prices and soft landing of the domestic economy, he said.
On the domestic front, China's inflation rate accelerated to 6.5%, a 37-month high, in July on surging food costs, while its Producer Price Index (PPI), a major measure of inflation at the wholesale level, rose by 7.5% amid deepening worries over the downgrade of US debt.
