Millennium Post

China’s economy continues to slow in July

China’s economy continued to slow down as declining exports and imports impacted revenues, raising fears about the strength of the world’s second-largest economy.

The weaker-than-expected data sparked speculation that Beijing may introduce stimulus measures to spur growth.

The official data released on Friday showed China’s export and import growth fall for the second straight month in July.

The export growth slowed sharply in July to a six-month low following dwindling demand from Europe and Japan.

Exports rose by mere one per cent year on year to $176.9 billion in July, plummeting from the 11.3 per cent growth seen in June and well below market expectations, the General Administration of Customs (GAC) said. Imports rose by 4.7 per cent year on year to $151. 8 billion compared with a growth of 6.3 per cent in June. The trade surplus narrowed 16.8 per cent year on year to $25.2 billion in July, taking the combined trade surplus to $94.1 billion for the first seven months of the year.

China’s fiscal revenues grew 8.2 per cent year on year to $168.77 billion in July. During the first seven months of the year, the fiscal revenues expanded by 11.6 per cent to 7.45 trillion yuan, down from the 30.5-per cent growth seen in the same period last year.

The ministry attributed the slower growth to the slowing economy, dropping inflation and structural tax reductions.

China’s economy expanded 7.8 per cent year on year in the first half of 2012, down 1.8 percentage points as compared to during the same period of previous year.
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