China’s exports experienced a significant slowdown in September as global demand weakened, raising concerns about stimulating growth in the world’s second-largest economy. Exports only increased by 2.4% year-on-year, down from a 8.7% growth in August, while imports rose by a mere 0.3% during the same period. The trade surplus in September was $81.7 billion, lower than the previous month.
The Chinese government has been grappling with economic recovery post the COVID-19 pandemic. The recent increase in tariffs by the U.S. and Europe on Chinese exports has further clouded the trade outlook. Weak import growth is indicative of slack demand, exacerbated by the property industry’s decline.
Despite various announced measures to boost the economy, policymakers are yet to implement the necessary stimulus on a large scale. The report by ING Economics highlights the slowing overall exports, emphasizing the need for other sectors like investment and consumption to contribute to meeting the government’s growth targets.
If the promised increase in spending materializes, it could drive stronger imports of industrial materials and other goods. While the export sector has been a key supporter of China’s manufacturers, escalating trade barriers may pose challenges in the future.
Overall, the Chinese economy faces hurdles in reigniting growth amidst a challenging global economic scenario.
© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.