This content is from: Innovation

China Trade Surplus Widens

China’s trade surplus widened by less than expected in the latest month as imports surged and the pace of global demand slowed, raising concerns about the strength of the economy, according to Reuters.

China’s trade surplus widened by less than expected in the latest month as imports surged and the pace of global demand slowed, raising concerns about the strength of the economy, according to Reuters. On Friday, the government of China reported that its trade surplus widened to $13.1 billion in May from $11.4 billion the previous month, although the increase was less than the $18.6 billion that economists had expected. Exports were up 19.4% year-over-year in May from 29.9% previously, while imports accelerated from 21.8% to 28.4% growth during that period.

The data revealed the lowest level of sales to the U.S. and European Union since the end of 2009, indicating that the global economic recovery could be losing steam. Chen Yong of Huatai United Securities warned, “There are still uncertainties hanging over the world recovery.” However, Wang Tao of UBS said, “The overall strength in imports suggests that China’s domestic demand has not slowed as much as the market may have feared.” Chen also hinted at a potential implication for monetary policy, noting, “The trade surplus in May is still at a relatively high level, which means there remains huge pressure for yuan appreciation.”

Click here to read the story from Reuters.

Related Content