China's export and import growth slowed for the second straight month in
July, raising fears about the strength of the world's second-largest economy.
Exports rose by 1% from a year earlier, down from 11.3% growth in June,
amid slowing demand from key markets.
Meanwhile, imports rose by 4.7% compared with 6.3% in June, indicating
that domestic demand was also slowing.
Analysts said the data was weaker-than-expected and may see Beijing
introduce stimulus measures to spur growth.
"Trade data has come in dramatically below expectations - the worst
export growth number (excluding Chinese New Year) since November 2009 -
highlighting the risk that the external environment poses to an economy in the
midst of a rapid internal slowdown," said analysts in Beijing.
"The government is likely to respond by ramping-up its stimulus
efforts, with both monetary and fiscal guns firing."
European markets are crucially important to China but with European
economies in a fragile state the implication for Export growth is obvious and
the potential for the euro debt crisis to spread would result in a further
decline in export growth in the months ahead.
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