China reported better than expected exports and imports, pointing towards stability in the second largest economy in the world. The trade figures from China are important and indicate surge in external demand and increase in domestic consumption in China. During July, the exports were higher by 5.1 per cent compared to fall of 3.1 per cent during June. Reuters analyst forecast was expecting a rise of 3% in July 2013.
The imports were higher by 10.9 per cent. The signs of improvement in China after more than two years of slowdown in growth were taken positively by markets.
The stability in Chinese GDP will mean much stable demand in the major economies in the West. The global economic trend and sentiment would turn positive as we are getting positive news from the United States over the last few months. The employment data from US has been improving with every month. And, the investor confidence has improved. The stock markets are trading much higher compared to July 2012.
Compared to last July, exports from China to United States were higher by 5.3 per cent. The exports to European region were higher by 2.8 per cent. Trade surplus stood at $17.8 billion. There are still some structural issues China is facing. However, with positive steps taken by the government, and more expected to come in the future, the outlook is positive.
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