Chinese export growth experiences sharp decline in September

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China’s export growth slowed significantly in September, while import numbers were modest, according to data from the General Administration of Customs.

Only 2.4 per cent of overseas shipments grew year over year, which is a sharp decline from the 8.7 per cent growth in August and less than the 6.0 per cent growth predicted by Bloomberg analysts.

Imports increased by a moderate 0.3 per cent year over year, which was a minor decrease from the 0.5 per cent increase in August and reflected ongoing weakness in domestic demand. Recent consumer inflation statistics, which also showed a slowdown in September and suggested generally weak demand in the economy, further supports this pattern.

Chinese authorities are actively working to boost domestic activity and revitalise the struggling real estate market in response to these economic difficulties. Financial officials unveiled a significant fiscal stimulus program on Saturday as part of a larger plan to deal with the ongoing real estate market turmoil and persistently low consumer spending.

The government intends to issue special bonds to support banks, according to Finance Minister Lan Fo’an, opening the door for more spending targeted at reducing local government debt and stabilising the real estate market. The leading banks in China also declared that, starting on 25th October, they would reduce interest rates on existing mortgages.

Zichun Huang, an economic expert at Capital Economics, observed that export volumes had somewhat cooled when accounting for seasonal and export pricing changes. Although he warned that rising trade barriers could present difficulties in the future, he expressed optimism that export competitiveness would support exports in the near term.

China’s continuous attempts to alleviate economic strains and stimulate growth in a difficult international trade climate are reflected in the latest data and policy initiatives.

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