Exports grew by 4.9, but forecast increase was 8.5. Imports grew by only 0.3 compared to 5.3 in March and 11% forecast. Domestic demand in sharp decline. At the Canton Fair orders down by 2.3% compared to last year.

Beijing (AsiaNews) - Chinese exports and imports slowed in April, raising fears for a real recovery in the second world economy. Among the causes of the slowdown are the lowering of domestic demand and the European crisis.

Figures released today show that exports increased by 4.9 % in April, compared to an average annual growth of 8.5 and 8.9 in March. Imports grew by only 0.3% compared to 5.3 in March and 11% forecast.

The figures show a slowing Chinese economy which in recent years - with the credit crisis - has seen large injections of public money with inflation and high property prices. The government then attempted to correct the imbalance by restricting the volume of loans and raising the value of the Yuan. The slowdown in the month of April is one of the first signs or the knock-on effects of this policy, but experts fear in the near future there will be even more problems, with many concerned that 2012 will be one of the most negative years to date in China.

The reduction of import-export is mainly due to falling domestic demand. For example: in April crude oil imports fell to 22.21 million tons, the lowest volume since December. But the demand from abroad has also dropped. The Chinese economic model always depended on exports, facilitated by highly competitive prices. But the global crisis in the U.S. and Europe has decreased the demand from these countries. A few days ago, on May 5, the Canton Fair, a semiannual event for trade, closed. Export orders fell by 2.3% compared to last year. Even companies linked to the production of Christmas decorations and toys have seen a reduction in requests, resulting in further layoffs and plant closings.

 

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