China trade data for March paints mixed growth picture
Published: 10th Apr 2012 07:56:42
China's trade data for March has unveiled a mixed picture of growth in the world's second-largest economy.
Exports grew by a more-than-expected 8.9% during the month from a year earlier, indicating that global demand may be picking up.
However, imports grew by 5.3%, down from a 39.6% jump last month, raising fears about slowing domestic demand.
The data comes as China has been trying to boost domestic consumption in a bid to rebalance its growth.
"There is some evidence that domestic demand is showing signs of moderation compared to last year," Rajiv Biswas of IHS Global told the BBC.
"Growth momentum has moderated due to monetary tightening last year and we are still feeling its impact on the economy."
The success of its export sector has been one of the biggest drivers of growth in the Chinese economy.
However, economic issues have resulted in a slowdown in some of China's biggest export markets, such as the US and Europe, hitting consumer sentiment in those regions and denting demand for Chinese goods.
That has raised concerns that China's export-dependent growth may also be hurt. However, analysts said the latest export numbers may help allay those fears.
"The global economy isn't collapsing. We are still seeing some underpinning demand for Chinese exports despite the eurozone issue," said Mr Biswas.
"The fact that exports are still growing is a positive signal."
He explained that the recent recovery in the US economy had helped to boost consumer confidence, which has had a positive bearing on Chinese exports to the country.
Data out last month showed that retail sales in the US rose by 1.1% in February, the biggest increase in five months.
At the same time, China has been trying to tap into the fast-growing emerging markets across the globe, a move analysts say has helped it offset slowing demand from developed markets.
China's latest trade figures show that both export and import growth rates are slowing
The uncertainty in the global economy in recent years has resulted in a shift in China's growth policies.
Faced with a slowing global demand for its exports, Beijing has been trying to boost its domestic consumption in a bid to sustain its high pace of growth.
Authorities have been easing monetary policy in an attempt to spur demand.
The Chinese central bank has already reduced its reserve ratio requirement, the amount of money that banks need to hold in reserve, twice in the past few months, in a bid to boost lending in the country.
Analysts said the weak numbers may prompt the bank to take further measures.
The data was "likely to convince policy markers to ease monetary policy to stimulate the domestic segment of the economy", Dariusz Kowalczyk of Credit Agricole CIB said in a note.
Harvard CitationBBC News, 2012. China trade data for March paints mixed growth picture. [Online] (Updated 10 Apr 2012)
Available at: http://www.manchesterwired.co.uk/news.php/1421435-China-trade-data-for-March-paints-mixed-growth-picture [Accessed 11th May 2013]
At 10:45:43 in OtherA sheep once sold for slaughter is looking for a new home after turning up on a couple's patio. ...
At 09:33:20 in OtherThousands of football fans from Greater Manchester are making their way to London for the FA Cup final....
At 01:13:49 in OtherA memorial marking the 28th anniversary of the Bradford City football stadium fire, in which 56 people died, is to take place later....
At 21:50:33 in OtherEight people have been arrested in Northern Ireland within the last 24 hours by immigration enforcement officers from the Home Office....
At 19:06:48 in OtherThe second of two men being hunted by police after a prison van escape on 30 April has been recaptured, Greater Manchester Police have said....
At 19:01:29 in OtherPeople in Manchester should not to give money to beggars - charities, police and the city council have said....
At 17:08:01 in OtherIt is a sunny afternoon in Oldham, Greater Manchester and about 100 men and women from North West England's Pakistani community have ga...
At 14:17:45 in OtherA man has been arrested on suspicion of indecent assault as part of a police investigation into historical sexual abuse at a Manchester musi...
At 14:15:43 in OtherThe proposed route for the new HS2 train line, bypassing Warrington, will have a negative impact on the town's economy, councillors hav...
At 11:17:34 in OtherThe High Court has upheld a decision by a judge that a man accused of child sex abuse offences whose trial collapsed is mentally unfit to st...
News In Other Categories
Ask most people about their idea of a therapy session and it will probably be a dispassionate professional sitting quietly taking notes as a...
Falkland Islands police have asked the Met Police to investigate an allegation of sexual abuse by comedian Jim Davidson dating back about 30...
Plans to create a multi-million pound Chinese business park in London's Royal Docks have been revealed as the preferred option to redev...
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol ba...
More than half the schools in England's priority building scheme do not have guaranteed funding, it has emerged....
A cafe customer has raised the alarm after spotting four men in an inflatable dinghy who ended up clinging to a buoy and waving for help....