|Girish Shetti |||Oct 13, 2016 04:30 PM EDT|
(Photo : Getty Images) China's exports and imports fell in the month of September.
Weak global demand continues to exert pressure on China's export market, as exports in the month of September dropped well below market expectations. The country's imports also witnessed a steep fall in the same month.
Exports for the month of September tumbled by 10.0 percent in dollar terms and imports dropped by 1.9 percent. The trade surplus of the world's second largest economy currently stands at $41.99 billion.
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Both export and import numbers clearly beat analyst's expectations. Exports were expected to fall by 3.0 percent and imports to rise by 1.0 percent, according to a forecast by Reuters poll of analysts.
When calculated in Yuan denomination, China's exports dropped by 5.6 percent on a yearly basis and imports increased by 2.2 percent, with trade surplus standing approximately at 278.35 billion Yuan ($41.40 billion).
Yifan Hu, chief investment officer and chief China economist at UBS Wealth Management, told CBNC that weak domestic demand is equally to be blamed for the drop in exports.
Yifan added that a five percent depreciation in the Yuan in the month of September further dampened the exports. Additionally, she noted that import numbers would have been far weaker if oil had not steeply risen from $30 barrel to $50 barrel in September.
Economists are still not sure whether the latest trade data signifies any loss of momentum in the country's economic recovery. Many analysts say that it is too early to say that China's economic recovery is in real danger of losing momentum unless other important economic data suggests so.
The Chinese economy has been on a downslide since mid-year, with many economists calling the downturn the worst phase that China has seen in the last two decades. However, the Chinese government insists that the downturn would not result in a "hard landing" for the economy.
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