Indices of exports and imports of China fell below than expected. Weak demand for Chinese goods on the domestic market and abroad destroys all hope for the restoration of the second largest economy in the world.
China’s exports fell by 1.8% compared to April figures last year. This was reported by the customs service of China. These figures confirm the government’s forecast on what the year 2016 will be very difficult for the Chinese economy.
Imports in April decreased by 10.9% compared to the year 2015. Indicators on purchased goods are down for the 18th month in a row. This suggests that domestic demand remains weak, despite the development of infrastructure and record credit growth in the first quarter of this year.
The April surplus of China amounted to is 45.56 billion, while expected no more than $ 40 billion.
The Cabinet of China has promised to take measures to stimulate exports, including to support banks that increase lending. Also, the Chinese government plans to expand insurance of export loans and increase tax benefits for some firms.
Last year, amid a decline in global demand, China still managed to increase its share in world exports from 12.3% to 13.8%. This indicates that the export sector remains competitive.
