China’s exports grew faster than expected in October, indicating that global demand could boost an economy that is chugging at its weakest pace since 1990.
Overseas deliveries grew 11.6 percent in the year through October, beating the expected pace of 10.6 percent in a Bloomberg News poll of economists. Imports grew 4.6 percent, against estimates of 5 percent, resulting in a trade surplus totalling $45.4 billion, according to the customs administration.
Much of the growth in exports is attributed to demand in the U.S. and Europe, which accounted for nearly a third of the deliveries. Shipments to Hong Kong, which are re-exported elsewhere, shot up 24 percent last month.
“The U.S. recovery is pretty strong so China exports are holding up,” Hu Yifan, a Hong Kong-based chief economist at Haitong International Securities Group Ltd., told Bloomberg News. “There might still be some fluff in the trade numbers due to fake invoicing, but there won’t be severe fake trade like that of last year.”
Exports had increased 15.3 percent in September. Trade surplus in October was projected to be $42 billion, after $30.96 billion in September.
Exports to Japan fell 8.1 percent in October while shipments to countries within the Association of Southeast Asian Nations rose 18 percent from the previous year.
Economists surveyed by Bloomberg forecast that China’s economy will expand 7.4 percent in 2014, the weakest growth since 1990. The economy expanded 7.3 percent in the third quarter and 7.4 percent in the first three quarters of the year. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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