We learned today that China's trade volume unexpectedly 3.1% year-on-year in June with both imports and exports down. This unexpectedly weak data point highlights the risk of growth deceleration in emerging markets generally and China specifically.
Here is how HSBC reports the data release according to the Wall Street Journal:
The simultaneous decline of exports and imports underlines the weakness of both external and domestic demand conditions. The last time that both imports and exports contracted was in October 2009 (stripping out Chinese New Year distortions). The current downside pressures to growth seem to be even larger than the mid-year slowdown in 2012 (when export growth almost faltered and imports temporarily contracted)…Going forward, external headwinds will likely persist…Pol...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.