Chinese imports in dollars rose in August 2016 for the first time in nearly two years, while exports slowed its decline. The imports surprised analysts and rose by 1.5% yoy, reversing the losing trend since July, when it was decreased by 12.5%. The increase in August was the first annual growth in dollar dimensions since October 2014. Meanwhile, the exports in dollars decreased by 2.8%, once in July recorded a decline of 4.4%. Thus, the trade surplus of China became 52.05 billion USD, slightly less than the value in July (52.31 billion USD). The surplus is the highest in seven months since and does not justify analysts’ expectations.
Despite the good data, the weak global demand will continue to weigh on Chinese exports and prospects for the manufacturing sector. However, the data might be ray of hope for global trade amid recent concerns about protectionism and stagnation in negotiations on the Trans-Pacific Partnership and transatlantic partnership for trade and investment.
World Trade Organisation expects global trade to record a fifth consecutive year of growth below 3%, because of the lower value of the goods, which in turn is due to fluctuations in exchange rates and the decline in commodity prices.
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