China exports, imports fall again in August but pace slows

China’s exports and imports sank again in August, data showed Thursday (Sep. 07), as the world’s second-largest economy struggles with sluggish global demand and a wider slowdown.

However, the pace of contraction slowed from the previous month and not as bad as feared.

Overseas shipments sank 8.8 percent on-year, the customs authority said, compared with a 14.5 percent plunge in July, while imports were off 7.3 percent, from a 12.4 percent retreat before.

Imports also fell by 7.3% from 12.4% the previous month, amid consumers’ reluctance to buy despite prices falling in July for the first time in more than two years.

Economists surveyed by Bloomberg News forecast both to fall nine percent.

While exports to Western countries fell significantly in August from a year earlier, those to Russia remained strong, demonstrating strong economic ties despite the war in Ukraine.

China is also Brazil’s most important trade partner. See below a chart comparing the pace of exports from China to the biggest country in South America and vice-versa. The data is from DataLiner.

Imports and Exports | China and Brazil | Jan 2019 – Jul 2023 | TEU

Source: DataLiner (click here to request a demo)

Apart from a brief rebound in March and April, China’s exports — long a driving force for growth — have been in constant decline since October.

In July they fell to their lowest level since 2020, when global demand was hammered by the Covid-19 pandemic.

In July they stood at the lowest level since 2020, when global economic activity had been paralyzed by the covid-19 pandemic.

On the other hand, the onshore yuan (CNY), a currency that circulates within China, touched 7.3279 per dollar on Thursday, its lowest value since December 2007.

The value of the offshore yuan (CNH), which circulates outside mainland China and is traded more freely, fell to 7.3350 per dollar.

Source: Isto É Dinheiro

To access the original news source, visit: https://istoedinheiro.com.br/comercio-externo-chines-se-contraiu-novamente-em-agosto-mas-a-um-ritmo-menor/

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