China’s exports dropped sharply in January, the third consecutive month of export declines, increasing concerns about rising unemployment and the impact of the global slowdown.
China’s exports dropped by 17.5% to $90.45 billion in value compared to the same month last year. Even considering that there were five fewer working days due to the Chinese New Year holiday, the statistics released Wednesday(Feb 11) from the General Administration of Customs were far worse than expected. In terms of value, exports have nearly halved since last year. Exports declined 2.8% in December 2008.
Imports were down by 43.1% to $51.34 billion, following a 21.3% decline in the previous month. leaving China with a January trade surplus of $39.1 billion.
Economists had expected bleak figures after earlier similar results from Japan and South Korea, which indicated that their export industries had dropped sharply.
‘We expect China exports will slow quite significantly in coming months.’
The export sector encountered rising costs and an appreciating currency even before consumption overseas dropped. Exports of machinery and electrical goods fell sharply, while sales of toys dropped 14.7% and textiles 12.3%.
Source : Konaxis
