The recent fall in the mainland's exports deepened last month, compared with a bumper year in 2008, but economists still believe the economy is slowly recovering.
Overseas shipments have fallen for nine consecutive months, dropping 23 per cent to US$105.42 billion last month following a 21.4 per cent slump in June. Imports fell 14.9 per cent to US$94.79 billion, compared with 13.2 per cent in June, China Customs revealed yesterday.
Economists said the comparisons were being made from a high base last year, adding that China remained on track for recovery amid signs of a revival in orders from the United States, the second-largest consumer of mainland-made goods.
They said they expected the central government to increase efforts to bolster domestic demand and stick with flexible monetary policies to cushion weak foreign trade.
'Recovery is well on track, but not as spectacular as many of us thought,' Bank of America-Merrill Lynch economist Lu Ting said, citing the macroeconomic data released yesterday. 'Domestic consumption is gaining more importance in the recovery story.'
In the first seven months of the year, exports fell 22 per cent to US$627.1 billion and imports dropped 23.6 per cent to US$519.61 billion. The trade surplus, which stood at US$10.6 billion last month, was 12.4 per cent lower at US$107.49 billion for the seven months.
Last month, shipments to the US dropped 14.1 per cent, slower than the 16.8 per cent decline in June, setting the stage for further improvement in coming months, Citigroup economist Ken Peng said. Imports were dragged down last month by lower commodity prices, particularly crude oil, he said.
