Published Date : Jul 10, 2014
China’s economy finally got a breather as exports expanded by 7.2% in the month of June owing to strong U.S. consumer demand. Compared to the 7% year-over-year increase in May, this is being seen as a positive sign for China’s global economic outlook, and economists believe that it may be the right pace for the country based on global demand. Imports increased 5.5% resulting in a USD 31.6 billion trade surplus, which is much below USD 35.92 billion in May.
Imports rose by 6% year-over-year in the month of June from the 1.6% fall in May. U.S. imports of China-manufactured goods reached USD 37.99 billion in the fifth month of the year. This means that 20% of goods imported by the U.S. globally came from China, compared to the 16% in 2008.
The yuan, currently trading at 6.19 to the dollar, depreciated by 2.4% in 2014. This was up from 3% depreciation earlier this year, which exports say is a welcome change. Moreover, China’s ministers from the finance department have said that the economy is too weak to stop intervening on the yuan and cash flow isn’t steady enough. They also warned that while the country’s economic performance in the second quarter was better than the previous period and there were positive signs of stabilization, it is too soon to lower its guard.