Unexpected Fall In Chinese Export Highlights Global Economic Slowdown

China’s exports unexpectedly fell in September, signaling the constraints of global demand on the nation’s recovery and highlighting distortions caused by fake invoices that have yet to be eliminated from trade data.

Overseas shipments dropped 0.3 percent from a year earlier, the General Administration of Customs said in Beijing on Oct. 12, trailing all 46 estimates in a Bloomberg News survey, while imports rose a more-than-forecast 7.4 percent. The release of September inflation data today will provide further indication of the strength of domestic demand.

The trade report may add to Premier Li Keqiang’s challenges in defending the government’s 7.5 percent expansion goal for this year. The International Monetary Fund cut its global growth outlook last week as capital outflows further weaken emerging markets and warned that a U.S. government default could “seriously damage” the world economy.

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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu