Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

China 2011 trade surplus to shrink further -think-tank

Published 04/25/2011, 12:00 AM
Updated 04/25/2011, 12:04 AM

BEIJING, April 25 (Reuters) - China's full-year trade surplus is likely to narrow further to about $140 billion, or 2 percent of the gross domestic product, due to surging global commodity prices, a government think-tank said on Monday.

If the forecast is accurate, it would mean China's trade surplus as a share of GDP will fall further from last year's 3.1 percent. That could mitigate international pressure for China to let the yuan rise faster to improve its balance of payments.

In a report, the Development Research Centre said China's total imports could grow about 25 percent this year, outpacing export growth, which may slow to 20 percent from last year's 31 percent.

It said the slowdown in exports was partly due to a high comparative base from a year ago.

The projection is in line with a forecast made by the commerce ministry, which said on Friday that China's imports are likely to grow at a faster clip than exports this year, leading to a further improvement in the trade balance. [ID:nL3E7FM057]

China's gaping trade surplus has been a lightning rod in its relations with the United States. Some U.S. lawmakers say the trade surplus is exacerbated by an undervalued yuan that is managed by Beijing, providing a competitive advantage for Chinese exporters.

China has said it intends eventually to allow market forces to set the value of the yuan but wants to do so gradually in order not to disrupt its export sector. Lately, Beijing has also said it recognises the need to balance its trade more toward domestic consumption.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Rising global commodity prices and solid domestic economic growth helped China record a rare trade deficit in the first quarter.

The think-tank said China's economy, the world's second-largest, is expected to grow about 9 percent this year, slowing from last year's 10.3 percent.

It said the building of government-subsidised homes could moderate the impact from the clampdown on the property sector. That should help property investment grow more than 20 percent this year, but still down from last year's 33 percent. (Reporting by Aileen Wang and Koh Gui Qing; Editing by Ken Wills)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.