China trade data underscores growth worrieshttps://indianexpress.com/article/news-archive/web/china-trade-data-underscores-growth-worries/

China trade data underscores growth worries

China’s exports posted their lowest growth rate in almost a year in May while imports unexpectedly fell,government data showed

China’s exports posted their lowest growth rate in almost a year in May while imports unexpectedly fell,government data showed on Saturday,underlining concerns that growth in the world’s second-largest economy could slow anew in the second quarter.

Evidence has mounted in recent weeks that the economy is fast losing growth momentum as sluggish domestic demand fails to make up for lethargic export sales.

The latest figures,shorn of the hot money speculation and exports to warehouses but booked as sales that had inflated previous months’ data,more accurately reflect the grim reality facing China’s exporters.

“The trade data reflects the sluggish domestic and overseas demand,signalling a slower-than-expected recovery in the second quarter,” said Shen Lan,an economist at Standard Chartered in Shanghai. Data for May retail sales and industrial output,as well as investment and inflation,are due on Sunday and could provide more evidence of the slowdown.

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Exports edged up 1 per cent in May from a year earlier,the lowest growth since last July.