China export growth edges up to 7.2 per cent in June

BEIJING: China's trade performance improved in June but still missed market forecasts, reinforcing expectations that Beijing will have to unveil more stimulus measures to stabilise the economy and meet its 2014 growth target.

Exports rose 7.2 percent in June from a year earlier, the best pace in five months, but well below a median forecast in a Reuters poll for a rise of 10.6 percent. Import also missed expectations, growing by 5.5 percent versus forecasts of 5.8 percent, although they returned to positive territory after a small drop in May. China's combined exports and imports edged up just 1.2 percent in first six months of the year, data showed."For the economy to rebound in the second half of this year, we believe more policy support is necessary due to the unsteady recovery base," said Wang Jun, economist at the China Centre for International Economic Exchanges, a think-tank in Beijing.

Premier Li Keqiang said that economic growth quickened in the second quarter from the previous three months, but added that further modest government support measures will still be needed.

Beijing has set an annual growth target of around 7.5 percent.

But economists say the recovery still appears patchy, and more stimulus may be needed to offset the downdraft from a cooling property market on the broader economy.

"We think China could miss its target . We expect combined exports and imports to rise 5 percent in 2014 from a year ago," said Li Huiyong, an economist at Shenyin & Wanguo Securities in Shanghai.

Source : dailyshippingtimes.com