China’s export rose at a slower rate in September dropped down at a slower rate in September, influenced by a quick decline in orders as the trade war escalates with the United States affecting the Chinese shipments, based on the survey by Reuters.
Imports exceeded recent highs, which is not a good indicator for Chinese policymakers who are relying on economic growth with weaker external demand.
If the economy further slowed down, economists see that this could drive more stimulus measure that would boost small and medium-sized firms as the main source of employment.
Export growth of China slowed to 8.9 percent in September from 9.8 percent gain in August., based on the median estimate of 32 economists in the Reuters poll.
Imports are also anticipated to slow down to 15 percent from 19.9 percent gain in August.
Forecast on exports tells a further slowdown in September amid rising trade protectionism. Although, the economist at Nomura noted that one less working day has added pressure to go down.
On the other hand, if the China-US trade tension continues for medium-to-long-term, this would have an impact and “hit beyond the scales” in trading reports.
China’s overall trade surplus is presumed to drop to $19.4 billion in September from $27.89 billion in the previous month.
The recent forecast of the International Monetary Fund reduced its global economic forecast for 2018 and the next as repercussion on Sino-US trade war. Moreover, China’s economic growth forecast declined to 6.2 for this year and 6.4 for the following year.
On Sunday, China announced their fourth cut this year to boost the economy, amounting to how much they have put aside as reserves to further strengthen the policy easing to hit back from the trade war with the US.