Fears Mount as China Reports Weak Trading Data in July
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iStockphoto/Thinkstock(BEIJING) — Worries are mounting over the strength of the global economy after China, the world’s second largest economy, reported worse than expected trade data on Friday.
In July, China’s exports rose by 1 percent from a year earlier, falling short of the 11.3 percent gain made in June. Analysts had expected to see a growth of about 8 percent.
Imports, meanwhile, faired slight better, climbing by 4.7 percent last month. But that still was below expectations — analysts had predicted a 7 percent gain — and the figures are down from the 6.3 percent growth in June.
The news sent Asian, European and U.S. stocks down on Friday.
Sluggish trade growth is problematic for the Chinese government as it readies to undergo a once-a-decade transition to new leadership. Since June, the country has cut interest rates twice, but it may need more aggressive action to reverse the downturn.
Copyright 2012 ABC News Radio