China's exports declined at a slower than expected pace in August, while imports logged the the first growth since 2014 on strong domestic demand.
Exports declined 2.8 percent year-on-year in August but slower than the 4.4 percent decrease seen in July, the National Bureau of Statistics said Thursday. Economists had expected a 4 percent fall.
Meanwhile, imports grew 1.5 percent in contrast to a 12.5 percent decline in July. This was the first increase since late 2014 and confounded expectations for a 5.4 percent drop.
The trade surplus came in at $52.05 billion versus July's $52.31 billion balance. The surplus was forecast to rise to $58.8 billion in August.
Looking ahead, a gradual recovery in global demand probably means some further upside to export growth in the coming quarters, Julian Evans-Pritchard at Capital Economics, said.
The economist said import growth should also pick up further on the back of stronger domestic demand and a further recovery in global commodity prices.
In yuan terms, exports increased 5.9 percent and imports advanced 10.8 percent from the same period last year.
Data from the People's Bank of China showed Wednesday that foreign exchange reserves decreased by around $16 billion from prior month to $3.18 trillion at the end of August, the lowest since 2011.
Evans-Pritchard said the drop in reserves points to continued intervention by the central bank. It also suggests that capital outflows remain sizeable and so that the renminbi will stay under pressure in the coming months.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Business News
