The outlook for China’s economy has been boosted by stronger-than-expected growth for both exports and imports last month.
Firmer global demand lifted June exports by 11.3 per cent in US dollar terms, up from the 8.7 per cent growth in May.
In local currency terms, the value of exports grew by 17.3 per cent.
Domestic demand also showed surprising vigour, with imports rising by 17.2 per cent (in $US) over the month.
Oil imports also jumped sharply, to be 16.4 per cent higher over the year.
- China’s trade surplus expands to $US42.8b
- Iron ore imports up 15.4pc on a year ago
- Strong global demand likely to underpin export growth into the second half of 2017
What does this mean for the Australian Economy?
- Increase in Economic Growth, fueling trade, employment
- Increase in Export revenue, which could create an improvement in BOGS and thus an improvement on the CAD
- The growth in imports is good news for Australia’s miners, with iron ore shipments up by 15.4 per cent on an annualised basis, up from 5.5 per cent growth in May
- The persistent trade surplus, together with investment inflows, could help relieve the pressure from capital outflows