China"s exports - at a ten year low

In December 2008, China"s exports saw the biggest drop in the last ten years, as a result of the drop in demand, amid the economic world crisis.

Last month, Chinese exports dropped 2,8% YOY December 2007, to 111,16 billion dollars, after a drop of 2,2% in November, the Beijing Customs Authority announced. In December 2007, China"s exports logged a 21,7% growth.

It must be mentioned that the December 2008 decline was not as bad as analysts had anticipated -3,8%.

China"s exports to the European Union, its largest market, dropped by 3,5% YOY in December 2008. Exports to the United States dropped by 4,1%.

China"s imports fell by 21,3% in December, to 72,18 billion dollars, due to a lower demand for raw materials, more than the 19,1% drop expected by analysts. This lead to a trade surplus of 39 billion dollars for China in December 2008.

In 2008, China"s exports grew by 17,2% as against 2007, when they logged a 25,7% growth. Their value amounted to 1.430 billion dollars in 2008. Imports grew by 18,5%, to over 1.130 billion dollars.

2008"s trade surplus grew by 13%, up to a record 295,46 billion dollars.

Analysts feel there is little chance for China"s exports to recover this year, given the recession that has hit the economies of the developed countries. The sectors which have been affected the most by the drop in foreign demand are textiles, metallurgy and electronics.

The drop in sales across the world has led to the closing of thousands of factories in China, and some regions saw protests of the laid off workers.

According to the estimates of "Royal Bank of Scotland" Plc., the growth in China"s economy could slow down top 5% in 2009, as against 11,9% in 2007. This could well be China"s slowest rate of growth since 1990. IN q3 2008, China"s economy grew by 9%.