RTTNews - China's exports dropped for an eighth month in June, but the pace of decline slowed from May, state media reported Friday, citing data released by the General Administration of Customs.
Exports fell 21.4% year-on-year to $95.41 billion in June, the Xinhua news agency reported. However, on a monthly basis, overseas sales rose 7.5%.
On the other hand, imports dropped 13.2% from the previous year to $87.16 billion, but rose 15.6% month-on-month. It followed an annual fall of 25.2% in May. Hence, there was a trade surplus of $8.25 billion in June, much narrower than the $13.4 billion recorded in May.
During the first half of the year, exports dropped 21.8% to $521.53 billion, while imports plunged 25.4% to $424.59 billion. During the same period, the trade balance showed a surplus of $96.94 billion.
Overseas demand for China-made products slumped in 2008 after spotting usage of toxic contents in many of its products. In a further blow, the financial crisis intensified the sluggishness in demand as it left millions unemployed across the globe. Conditions in the domestic economy was not different from the global situation.
To revive the economy by boosting domestic demand, the Chinese government had announced a 4 trillion yuan stimulus package. A notable decrease in the pace of decline in imports indicates that the package is yielding expected results and the worst may be over soon.
In June, Chinese Premier Wen Jiabao had said the government's spending plan offset a fall in trade. He had also stated that the country will continue a moderately loose monetary policy and proactive fiscal policy as the economy reached a critical phase.
Also in June, the World Bank raised its growth forecast for China, although it said it does not expect a high-single digit rebound until the world economy recovers convincingly. In it quarterly update, the World Bank raised its 2009 growth forecast for the country to 7.2% from 6.5% estimated in March.
Elsewhere on Friday, a joint statement issued by the National Development and Reform Commission and the National Bureau of Statistics showed that house prices in 70 major Chinese cities rose 0.8% month-on-month in June.
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