The Chinese economic outlook doesn’t look that healthy

Posted Wednesday, July 13, 2016 by
Skerdian Meta • 1 min read

The Chinese trade balance numbers were released a while ago. The main headline gives the impression of an improving economy. The trade balance last month was $46.64 while this month it increased to $48.11 billion. That´s a huge surplus in trade terms for any economy, but nowadays China is no country to be taken for granted, it already is the 1st economy in the world. 

Anyway, looking at the details it doesn´t look good at all, not only for China but for the entire global economy. While the trade balance in itself might be higher, the imports have fallen by 8.4% in the first half of this year and the exports have fallen by 7.7%.

The higher fall in imports has contributed to this misleading main headline. That shows that the Chinese are consuming and investing less than before and the demand in the rest of the world is declining too. That´s not a good sign and if it continues we might see another mini crisis we witnessed in February. 

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