Business News Asia
The China Customs Administration (GAC) reported that China’s exports fell in October for the first time in more than two years. The reason for this is sluggish demand and the risk that the global economy will fall into recession.
According to the report of the Ministry of Foreign Trade, exports decreased by 0.3% in October, below the growth of 5.7% in September.
At the same time, imports fell 0.7% in October, the first decline since August this year. As a result, China’s trade surplus increased to $85.15 billion in October from $84.74 billion in September.
Analysts at Barclays Bank have lowered their growth forecast for China in 2023 to 3.8%, as demand for Chinese goods on the global market is weakening. China’s exports are expected to decline by around 2-5% in 2023, compared with a previous forecast of 1% growth.
Analysts expect China’s gross domestic product (GDP) to grow by only 3.8% in 2023, down from the previous forecast of 4.5%, as Chinese real estate investment has plummeted. Investment in this sector is expected to decline by around 8-10%, compared with a moderate decline previously forecast.