China's economy shrinks despite stabilization efforts / haqqin.az
The trade data on Tuesday reinforced views that the world's second-largest economy is still slowly losing momentum, putting more pressure on Beijing to introduce further stimulus measures and keeping global markets on edge, Reuters reported.
In September, exports fell 3.7% from the same period last year to $205.56 billion, less than a 6.3% drop forecast by economists in a Reuters poll and moderating from a 5.5% decline in August, according to the report.
Imports by value tumbled for the 11th straight month, losing over 20% year-on-year in September, amounting to $145.52 billion, due to weak commodity prices and soft domestic demand.
China posted a trade surplus of $60.34 billion for September, the General Administration of Customs said on Tuesday, higher than forecasts for $46.8 billion and up slightly from $60.24 billion in August.
Read alsoChina launches international payment system CIPSChina is widely expected to post its slowest economic growth in a quarter of a century this year amid weak demand, factory overcapacity, high debt levels and cooling investment, the report notes.
As UNIAN reported earlier, China's foreign exchange reserves shrank by $43.3 billion in September to $3.514 trillion, as the central bank stepped up intervention to stabilize the yuan and calm sentiment after a surprise devaluation of its currency in August. The Chinese government, which was using a flexible policy of pegging the RMB to the U.S. dollar, devalued the yuan by 3.5%, which was the biggest one-off devaluation of the currency in the past 20 years.
Read alsoUkraine, China sign agreement on peaceful nuclear energy cooperationChina's International Monetary Fund reserve position stood at $4.69 billion, down from $4.73 billion the previous month.
Meanwhile, Bank of China predicts GDP growth may rise to 7%.