China’s exports fell more than expected in June as global demand remained stubbornly weak and as Britain’s decision to leave the European Union clouds the outlook for one of Beijing’s biggest markets.
Imports also shrank more than forecast, suggesting the impact of a flurry of measures to stimulate growth in the world’s second-largest economy may be fading, after encouraging readings in May.
“The uncertainty of Brexit is likely to weigh on demand for China’s exports to the EU, similar to the situation when the European bebt crisis in 2011-12 intensified,” ANZ economists Raymond Yeung and Louis Lam wrote in a note.
“Clearly, China’s external outlook will still face tremendous challenges.”
Exports fell 4.8 per cent in June from a year earlier and were down 7.7 per cent in the first half of 2016, the General Administration of Customs said on Wednesday, adding that China’s economy faces increasing downward pressure and the trade situation will be severe this year.
