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China's May exports plunge 26.4%

(Agencies)
Updated: 2009-06-11 17:46

China's demand for iron ore, industrial components and other foreign goods has picked up as companies buy supplies for stimulus-financed projects. But global commodity prices are down from last year's highs, so imports have declined in financial terms even as volume rises.

China's May global trade surplus narrowed by 33 percent from the same month last year to $13.4 billion. April's surplus was $13.1 billion.

Exports to the United States contracted by 26.9 percent to $16.7 billion, narrowing the Chinese trade surplus with the United States by 23.7 percent from the same month last year to $10.9 billion.

Exports to the 27-nation European Union, China's biggest foreign market, plunged by 41.3 percent to $17.3 billion, narrowing the trade surplus with Europe by 39.3 percent from the same month last year to $7.7 billion.

China's global exports are likely to contract by up to 12 percent this year due to weakness in its major foreign markets, said Zhu Jianfang, chief macroeconomy analyst for Citic Securities in Beijing.

As for imports, "the drop will slow down as commodity prices recover," Zhu said. "The economy is starting to recover, which will improve demand."

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