China exports plunge fastest since 2009 on weak global demand

China’s foreign trade contracted much faster than expected last month, the latest sign of weakening global trade and lethargic domestic demand for commodities as the country’s economy slows.

The weak import figures on Tuesday highlighted how the slowdown in China’s huge construction and manufacturing sectors has crippled the country’s demand for commodities such as crude oil, iron ore, and copper. The export slowdown, meanwhile, shows that foreign demand is unlikely to cushion the blow from weak domestic conditions.

Exports fell 25.4 per cent in February from a year earlier in dollar terms, the worst one-month decline since early 2009 and down from the 11.2 per cent drop in January. Imports fell 13.8 per cent, trimming losses after an 18.8 per cent fall in January.

The International Monetary Fund in January lowered its global trade forecast for 2016 and 2017 by more than 0.5 percentage points, citing China as well as distressed economies in Brazil and the Middle East.

China’s economy has shown signs of slowing further this year after growing at its slowest pace in a quarter century last year...

This has been excerpted from 8 March 2016 article by Financial Times.