Finance

Finance

China exports shrink more than expected

11 March 2009 09:00 (UTC +04:00)

Bakuâ€“ APA-Economics. China’s exports fell much more sharply than expected in February, data showed on Wednesday, as the economy finally felt the full force of the global financial crisis, Reuters reported.
Exports in February dropped 25.7 percent from a year earlier, compared to a forecast of a 5 percent decline. Imports fell 24.1 percent, against a forecast of a 25.0 percent drop.
The country’s trade surplus shriveled to $4.84 billion last month, a three-year low, from $39.1 billion in January. Economists had expected a surplus of $27.3 billion.
The slump in exports and imports, which has been mirrored across Asia, underscores the dramatic downturn in the economy from the global credit crunch, which has sapped Western consumer demand and frozen trade finance.
Officials estimate more than 20 million migrant workers have lost their jobs because of the closure of thousands of export-oriented factories, especially those in China’s manufacturing heartlands near Hong Kong.
To support exporters, China has raised value added tax rebates on exports five times since the end of July, covering products such as textiles, furniture, toys, rubber and metals.
To give exporters breathing room, the central bank has effectively halted the yuan’s rise against the dollar since July.