Chinese Trade Balance Smaller Than Expected In August
(For August 2010)
China trade balance was reported at USD 20.0 billion vs. USD 28.7 billion in July. Export and import growth were running at 34.4 and 35.2 percent.
The accumulated surplus is now at USD 104.5 billion vs. USD 123.7 billion for the same last year and full year 2009 USD 196 billion.
Numbers are quite disappointing, exports on a seasonally adjusted MoM basis have slowed down from 11.4% in April, to 1.2% in July and declined 1.4% in August. Additionally, low base will start to fade from September and high base will start to kick-in from December.
Chart 1. China Trade Balance; Export & Import Growth
Source: Bloomberg