Chinese exports and imports growth likely to have slowed in July

China’s exports and imports growth data for the month of July is set to be released this week. According to a DBS Bank research report, Chinese exports are likely to have slowed to 9 percent year-on-year, while imports are likely to have decelerated to 12 percent, down from 11.2 percent and 14.1 percent in the previous month.

Early indicators, especially the NBS new export order PMI, entered the contraction zone for two straight months. Similarly, imports are expected to have also decelerated further because of weakened domestic demand. On the monetary front, the higher import commodity prices and a strengthening USD would continue to add upward pressure to both consumer and producer price inflation, added DBS Bank.

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