Exports from China increased during August, which reflected an improvement in external demand and revealed additional signs that the second largest economy in the world was stabilizing.
Imports, still better than last year at this time, were less than impressive. That in turn helped to produce a trade surplus that was wider than expected of $28.5 billion in August.
One analyst simply explained that China was back. It is not a strong recovery, but he said it is increasingly clearer that it has bottomed out.
Exports during August increased on an annualized basis by 7.2%. The information was taken from the General Administration of Customs.
August figures were up for the 5.1% posted in July following a fall of 3.1% in June. The August increase also beat forecasts by economists who were expecting a 6% increase.
Imports were up at an annualized rate of 7%, which was down from July’s increase of 10.9%, but the sharp turnaround is still showing from the fall in June of 0.7%. Nevertheless, the import numbers did not meet the forecast set by economist of 11.7%.
The economy in China showed less growth during the first six months of 2013, hit by the still slow global economy and weaker demand domestically.
However, recently the data has shown the economy stabilizing in a move upward.
Government officials have become more confident in the economy’s growth. They believe it will reach the projected target of 7.5% for this year, while the combined imports and exports should grow by as much as 8%.
During August, exports earmarked to the European Union still were sluggish, falling by 2% from the same month a year ago, but exports destined for the U.S. were up 6%. Exports for Hong Kong, a big center for transshipments, were up 6% as well for the year. Emerging markets also showed they might be recovering as Brazil exports were up by 14%.
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