Export Growth in China Drops, Raising Global Fears

China’s export growth was down sharply in July to a six-month low due to dwindling demand from Europe and Japan. China’s export growth fell almost to zero in July and new yuan loans trailed estimates, adding to signs the global economy is weakening. Official numbers yesterday missed estimates in Industrial production, retail sales and fixed-asset investment that all grew less rapidly than economists had projected. The central bank cut interest rates twice in June and July, and has also progressively lowered the reserve requirement ratio for banks, freeing up more cash for lenders to extend as credit. Central bank data released Friday, suggests that it hasn’t translated into as much new lending as hoped. [Louis Kuijs, Project Director, Fung Global Institute]: “I think looking at the data that came out yesterday, the activity data were suggesting a further deceleration of economic activity in China. At the same time, we saw inflation coming down. So both these activity data will keep up the pressure for more stimulus policies, whereas the inflation data gives the PBOC some room to actually provide some support for growth. Since the activity data is decelerating but still suggesting growth, I do not think that we will see very strong, very large stimulus policies coming out of Beijing in the coming months.” Stocks slid as the data intensified risks of a seventh quarter of deceleration in the world’s second-largest economy. The price for fuel was raised for the first time in

Tags: , , , , , ,

Comments are closed.

CIGI Experts Outline Prescriptions for Cannes Summit and Beyond in Special Report on G20 Issues

Waterloo, Ont. (PRWEB) October 20, 2011 With a possible euro zone collapse and Greek insolvency likely to dominate the upcoming [...]

Pathways Home Health and Hospice Satu Johal Receives CFO of Year of the Year Award; Silicon Valley Business Journal Honoree

Sunnyvale, California (PRWEB) December 02, 2011 Satu Johal, CFO at Pathways Home Health & Hospice, received the Silicon Valley Business [...]

Latest Financial Regulation News

Working Together Towards Better Financial Regulation and Stability in Asia Image by Asian Development Bank Tellers attend to clients in [...]

European financial regulation – 4 questions to Olivier Garnier (Societe Generale)

Olivier Garnier, Chief economist at Societe Generale Group, expresses his view on European financial regulation and its reform. Video interview [...]

AMS Health Care Mortgage Corporation Provides Debt Service Savings to Hospitals Utilizing FHA 242 Mortgage Insurance Program

Jacksonville, FL (PRWEB) August 30, 2013 An oft-overlook and relatively unknown federal program for hospitals seeking capital for needed and [...]

Vermont’s Captive Insurance Industry Off to Best Start Since 2005

Montpelier, VT (PRWEB) April 16, 2012 First quarter licensure of new captive insurance companies is off to a strong start [...]