China’s exports and imports dip raising growth concerns

China’s exports fell in January, the first decline in more than two years, raising fresh concerns about the impact of a global slowdown on its economy.

 

Exports dipped 0.5% from a year earlier hurt by sluggish demand and factories being shut during the Lunar New Year.

Imports fell by 15.3%, resulting in a trade surplus of $27.3bn (£17bn) which was a six-month high.

The fall in imports comes as China has been trying to boost domestic demand in an attempt to offset slowing exports.

Analysts said while the closure of establishments during the Chinese New Year affected the numbers, the decline could not be attributed to the festival alone.

They said that the bigger-than-expected drop, especially in imports, was worrying as it gave an indication of slowing growth.

A fall of over 15% in January cannot be entirely explained by the lunar calendar, and adds weight to the view that economic output is slower than headline indicators might suggest.

The debt crisis in the eurozone and high rate of unemployment in the US have hurt consumer confidence and dented demand for Chinese goods.

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