Chinese exports and imports slowed in October

The annual growth rate Chinese exports and imports slowed in October. The announcement heightened concerns about instability of the second largest economy in the world, which could encourage politicians to take more measures to stimulate the economy. The exports increased c 11,6% in October compared with a year earlier, slowing of progress in September, a jump of 15.3%, according to the General Administration of Customs of China. Despite the retreat result exceeded market expectations. Imports grew even an annual rate of 4.6% in October, falling sharply from the achieved expansion of 7% in September, but remained below expectations. The foreign trade surplus of the second largest economy in the world has reached 45.4 billion USD – a result similar to the historical record levels.

The exports continue to be one of the brightest rays of China’s economy, which apart from its internal contradictions was hit hard and slowing global demand, especially from Europe. Surprisingly strong export growth in September from 15.3% led some analysts to question the accuracy of official data on the background of continuing economic problems in the world and the geopolitical tensions between East and West.

Earlier in the week production in China reporting a 3-month high in October. The Managers’ Index supplies reached a level of 50.4 points compared to the final score of 50.2 points in September. The growth in new orders and new export orders – the main indicators of domestic and external demand, slowed to its lowest levels four and five months still remaining above the level of 50 points, which separates expansion from contraction. The measure of production in factories even fell to 5-month low of 50.7 points.

The annual growth of the second largest economy in the world slowed to 7.3% in the third quarter. The result was the worst of the global financial crisis was triggered mainly by the decline in activity in the property sector.