Chinas imports slump sparks fresh fears about global economy

first_imgShare on Messenger This article is more than 3 months old Share via Email This article is more than 3 months old Richard Partington Economics correspondent Read more @RJPartington … we have a small favour to ask. The Guardian will engage with the most critical issues of our time – from the escalating climate catastrophe to widespread inequality to the influence of big tech on our lives. At a time when factual information is a necessity, we believe that each of us, around the world, deserves access to accurate reporting with integrity at its heart.More people are reading and supporting The Guardian’s independent, investigative journalism than ever before. And unlike many news organisations, we have chosen an approach that allows us to keep our journalism accessible to all, regardless of where they live or what they can afford. But we need your ongoing support to keep working as we do.Our editorial independence means we set our own agenda and voice our own opinions. Guardian journalism is free from commercial and political bias and not influenced by billionaire owners or shareholders. This means we can give a voice to those less heard, explore where others turn away, and rigorously challenge those in power.We need your support to keep delivering quality journalism, to maintain our openness and to protect our precious independence. Every reader contribution, big or small, is so valuable. Support The Guardian from as little as $1 – and it only takes a minute. Thank you. Share on Twitter Topics Asia Pacific International trade Last modified on Fri 12 Apr 2019 13.55 EDT Share on WhatsApp Hopes remain that a deal can be reached between Washington and Beijing soon, after Trump said last week an agreement could be finalised in about four weeks.Stephen Innes, of the financial trading firm SPI Asset Management, said: “If a US-China trade solution is sealed, it will provide a significant and needed boost to China’s economy and will be much-need shot in the arm for the global economy.”There was also better news for global growth from the eurozone on Friday, with figures showing that industrial output fell by less than expected in February.Eurozone industrial production fell by 0.2% on the month in February, sightly better than a forecast for a decline of 0.5%. However, Germany, the largest economic power in Europe, continued to struggle, weighing down the overall figure.Economists also said Chinese imports could strengthen with the help of a fresh stimulus package from Beijing currently being deployed.Chinese data released on Friday showed the country’s banks extended 1.69tn yuan (£193bn) of new loans in March, more than the 1.25tn yuan predicted by economists, in a sign the People’s Bank of China tried to pump up the economy.Julian Evans-Pritchard, senior China economist at the consultancy Capital Economics, said: “While import volumes are likely to remain subdued, they will probably recover somewhat in the near-term as policy stimulus helps to shore up demand.” China’s trade with US slumps; eurozone factories beat forecasts – business live China hails ‘progress’ in trade talks, but US warns of ‘significant’ work ahead International trade Share on Facebook Read more A US cargo ship berthing in Qingdao, in China’s eastern Shandong province.Photograph: AFP/Getty Since you’re here… Fears about the strength of the global economy have been sparked by a fall in Chinese imports last month, as the trade war between Washington and Beijing puts a brake on growth.Imports to China fell by 7.6% in March compared with a year earlier, according to official figures, worse than City economists’ forecasts for the volume of goods bought from abroad to grow by 0.2%.The fresh decline followed a disappointing performance in February, when purchases from overseas dropped by 5.2%, suggesting a sustained decline in demand that could have damaging repercussions for the rest of the world.The latest signs of fragility from the world’s second largest economy come after the International Monetary Fund warned that global growth would slow this year as levels of protectionism rise.Analysts said the trade standoff between the US and China was likely to be a factor behind the slowdown, with Washington and Beijing locked in a bitter dispute over trade that has led both countries to impose tariffs on each other’s goods.The latest snapshot from Beijing revealed that US imports plummeted by 28% during the first three months of the year. Exports to the US slipped by 3.7%.Soy bean imports to China fell by more than 14% this year – a product on which Beijing slapped 25% tariffs for imports from the US after Donald Trump put US tariffs on Chinese goods. Global economy Share via Email Shares5858 China Share on Facebook Support The Guardian The growth of the Chinese middle class over recent decades has led global exporters increasingly to rely on consumers in the communist country, including European car manufacturers and makers of luxury goods.Chinese figures on Friday revealed that car sales in the country fell by 5.2% on the year to March, continuing a trend for declining sales under way since last summer. Sales fell last year for the first time in almost 30 years, sounding the alarm for European carmakers that have made China an increasingly important market for exports.Despite the slowdown for imports, Chinese exports surged by more than expected in March, as sales around the globe grew by 14.2%. The country’s trade surplus – the gap between exports and imports – jumped to $32.6bn (£24.9bn), from $4.1bn in February.The mixed picture may, however, have been influenced by the timing of Chinese New Year, as activity in the Chinese economy is often distorted by the celebration – which fell on 5 February in 2019. news Share on LinkedIn Share on Twitter Country has $32bn surplus in March but trade war with US is serving as brake on growthFollow all today’s developments – live China’s imports slump sparks fresh fears about global economy Share on Pinterest Economics Fri 12 Apr 2019 07.09 EDT Reuse this contentlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *