China's Exports Falls For The First Time In More Than Two Years
An unexpected collapse in demand for Chinese goods caused the exports to decline for the first time in more than two years in January, as the nation's trade was disrupted by the weeklong Chinese New Year holiday and Europe's escalating debt crisis that hurt the overseas demand.
The Chinese bureau of statistics issued the data for the nation's trade balance in January, where the trade-balance surplus widened to 27.28 billion dollars compared with the prior surplus of 16.52 billion dollars, and it exceeded economists'' forecast of 10.70 billion dollars.
As, the nation's overseas shipments fell this year, where the annual exports in January declined to 0.5% compared with the prior month's reading of 13.4%, but it still above the economists' expectations of -1.5%.
On the other side, the nation's annual imports in January declined to -15.3% compared with 11.8% a year ago, and it missed expectations of -5.0%.
Today's report may add to concerns that the world's second- biggest economy experiencing a deeper slowdown in 2012's first quarter , as the weaker global growth limits the nation's overseas demand along with the Chinese government policies to curb the property prices.
The lack of demand for the nation's goods, however, has led them to either freeze further purchases, or, in some cases, to start dumping their stockpiles. The impact is already being felt across Asia, especially in countries such as Taiwan and South Korea which make many of the components and parts used by Chinese manufacturers in their products,
It worth mentioning, that the International Monetary Fund said in its report in February 6 that China's economic expansion may be cut almost in half this year if Europe's debt crisis worsens .
The Chinese Inflation accelerated last month for the first time since July as food prices climbed before the holiday that started in January 22, the and manufacturing purchasing managers was released last week and it showed a contraction for the fourth straight month
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