China's Export Prospects Gloomy

China exports related grim predicted belt tightening by the government-European pemerntah into debt. China's predicted demand for goods plummeted. China's Ministry of Commerce export growth rate is high on the semester I/2010 feared a second semester growth slumped. Therefore, massive savings by the European Union (EU) may be more pronounced.

"Foreign debt crisis that occurred in many countries in the EU will change its policy of fiscal expansion into the savings-oriented. This will inhibit the growth of consumption and investment in the EU," said China's Minister of Commerce spokesman Yao Jian, quoted by Reuters on Tuesday (20 / 7 / 2010).

If European demand fell, labor-intensive industrial products affected are priced higher than an expensive product. Spanish, Italian, German, and English is a big country in Europe that conduct large-besara savings over budget.

Savings become an important issue after the Greek got a bailout last April. Greek crisis triggered a high vigilance over the sustainability of financing public spending across Europe. "Brazil, India and other developing countries have also tightened monetary policy," explained the Ministry of Commerce of China. "The room for continued growth of China's exports is limited," Yao added.

She explained, China will maintain policies that support the export of goods Panda Affairs, including tax reduction. China's exports grew 43.9 percent in June compared to last year (year on year / yoy). May, exports grew 48.5 per cent yoy.

Imports also swell, meaning that exports remain the motor of growth in gross domestic product (GDP) in the first half of 2010. China National Statistics Bureau (NBS) predict the second half of 2010 exports will be weaker, only grew 16.3 per cent yoy. "Exports this year grew only 24.5 percent forecast," said the State Information Centre (SIC).

Wang Jun, a researcher of China Center for International Economic Exchange-governmental think tank under the National Development and Reform Commission State Bamboo Curtain-states can not avoid a decline in exports due to the debt crisis of Europe.

"I predict China's export growth will experience a major decline, especially in the fourth quarter-2010. It seems the export will grow one digit by the end of this year," he explained For the latest updates PRESS CTR + D or visit Stock Market news Today

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