Chinese exports and imports declined in June

Figures indicate economic slowdown in China in the near future.

New Statesman
Export containers at the Ningbo Port in China. Credit: Getty Images.

Exports and imports in China declined by 3.1 per cent and 0.7 per cent respectively during June 2013, compared to the same month a year ago, suggesting that an economic slowdown will occur in the near future.

The fall in exports was primarily due to the weak demand for Chinese goods worldwide, while imports slipped mainly due to sluggish domestic demand. The Chinese goods are mostly exported to the US and European markets.

Compared to May 2013, exports and imports declined by 4.6 per cent and 9.3 per cent throughout the month of June.

During the first-quarter of this year, the country reported an annual growth rate of 7.7 per cent, compared to 7.9 per cent in the earlier quarter.

Wang Jin, an analyst at Shanghai-based Guotai Junan Securities, told the BBC: “We expect both export and import data may remain at a relatively low level in the second half, due to weak demand at home and abroad.”

Wei Yao, an economist at Société Générale, told The Financial Times: “Exports were too strong earlier in the year, now it’s a payback. But it does show that external demand for Chinese goods is really suffering and that leads to the point that Beijing needs to rethink its currency policy. There is no doubt that the renminbi is too strong.”

Earlier, the world’s second-largest economy had set an economic growth rate target of 7.5 per cent in 2013.

The Chinese producer price index (PPI) for manufactured goods fell by 2.7 per cent in June compared to the same month a year ago. However, the consumer price index (CPI) grew by 2.7 per cent in June, according to the National Bureau of Statistics of China.