Chinese trade surplus shrinks as imports surge

7th Aug 2024 10:06

(Sharecast News) - China's trade surplus shrank significantly in July, according to government figures released on Wednesday, as export growth eased and imports surged.

The country's trade balance fell to $84.65bn last month, down from $99.05bn in June and well below the $99bn expected by economists.

Exports were 7.0% higher than last July, with growth slowing from 8.6% the previous month and surprising analysts who expected an acceleration to 9.7%.

Meanwhile, imports jumped 7.2% year-on-year following a 2.3% annual decline the previous month, well ahead of the 3.5% increase expected.

"Overall, today's exports number suggest some weakness in the industrial production figures next week and could put China's 5% GDP target in doubt," said analysts at TD Securities.

"Thus, we expect China to engineer a weaker CNY in the coming months despite the recent carry unwind supporting CNY strength."