China: China records largest trade surplus on record in July
August 8, 2014
In July, exports increased 14.5% over the same month last year, which was well above the 7.2% increase recorded in June. The print overshot the 7.2% increase that market analysts had expected and represented the largest gain in 15 months. According to analysts, July’s surge in shipments mainly reflects a relatively weak yuan and the government’s measures to support the external sector, including faster VAT rebates and expanding credit to exporters.
Imports dropped 1.6% annually in July, which contrasted both the 5.5% increase recorded in June and the 2.6% expansion that market analysts had expected. In addition, July’s print marked a fourth-month low.
The trade balance recorded an all-time record surplus of USD 47.3 billion in July (June: USD 31.6 billion surplus), which was well above the USD 17.6 billion surplus recorded in the same month last year. The print exceeded market expectations of a USD 27.5 billion surplus. The 12-month moving sum of the trade surplus rose from USD 255 billion in June to USD 284 billion in July, which represented the highest level since June 2009.