China: Trade surplus shrinks in September on weak exports
October 10, 2011
The trade surplus shrank to a four-month low in September, as exports grew at the slowest pace since June. Exports rose 17.1% over the same month last year, which was well below the 24.5% increase observed in August and fell short of market expectations of a 20.5% expansion. Imports added 20.9% over the same month last year, which came in well below the 30.1% expansion recorded in August. As a result, the trade surplus narrowed from USD 17.8 billion in August to USD 14.5 billion in September. According to analysts, slower export growth in September shows that the country's booming exports have begun to ease as demand from trade partners in developed economies remains feeble and that the gradual rise in the value of the renminbi has taken its toll. That said, more data will be needed to confirm a change in the underlying trend.
Author: Ricardo Aceves, Senior Economist