China’s exports reach an all-time high as its trade surplus with the US widens: Economic wrap

China’s exports reach an all-time high as its trade surplus with the US widens: Economic wrap
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Updated 13 October 2021

China’s exports reach an all-time high as its trade surplus with the US widens: Economic wrap

China’s exports reach an all-time high as its trade surplus with the US widens: Economic wrap

Chinese exports leaped by an annual rate of 28 percent in September, the country’s latest customs report showed. 

This builds on the higher growth rate experienced in August, when exports increased by 25.6 percent. Strong global demand outweighed energy shortfalls and a rise in COVID-19 cases. Moreover, the value of exports reached a record of $305.7 billion in September.

Imports, on the other hand, grew at a slower annual rate in September — rising by 17.6 percent, compared to the 33.1 percent surge in the previous month. Imports in September were valued at $240 billion. Coal imports saw a jump by 76 percent as factories grappled with power shortages. 

Trade surplus in September saw an increase of $16 billion to reach $68 billion which is the highest level since 2015, while its balance of trade surplus also jumped to $66.7 billion. 

Notably, the growth rate of exports to the U.S almost doubled from 15.5 percent in August to 30.6 percent in September as China’s trade surplus with the US further widened to $42 billion in September.

The East Asian country’s trade is projected to continue its expansionary trend despite an expected decline in growth in the fourth quarter due to higher comparison base last year, China’s customs authority said.

UK economy 

The UK economy grew by a 0.4 percent month-on-month rate in August, according to the Office for National Statistics. This comes after the 0.1 percent decline it experienced in July. This means that GDP is now 0.8 percent less than during last year’s February before the COVID-19 lockdown.

The country’s GDP expanded by 2.9 percent in the three months leading to August, compared to market expectations of 3 percent, largely reflecting a gradual reopening of accommodation and food service businesses and an increase in essential human health activities. The yearly output increase saw a slight decline as it grew by 6.9 percent in August, compared to 8.8 percent in July.

The UK's balance of trade deficit increased to GBP3.7 billion in August, mainly due to a 2 percent monthly decline in exports. Goods exports fell by a monthly rate of 4.6 percent and machinery & transport equipment saw the largest plunge — a 12.2 percent decrease.

In addition, the country’s industrial production data was also published on Wednesday by the Office for National Statistics. It rose at a yearly rate of 3.7 percent in August. This was driven by a noticeable growth rate of 4.1 percent for manufacturing and a 5.8 percent yearly increase in the water supply and sewerage sector.

German inflation

Consumer prices in Germany rose by an annual rate of 4.1 percent in September, the highest level since December 1993. Improving demand and a small comparison base from last year's low prices contributed to this jump. 

Energy prices increased considerably by 14.3 percent in September and food prices grew at an annual rate of 4.9 percent.

Austrian budget

The budget deficit of Austria will be within the limit of the European Union's 3 percent of economic output next year. It is expected to reach 2.3 percent, contracting from 6 percent this year as growth recovers, the Ministry of Finance said.

Gernot Bluemel, the Finance Minister, will declare that the debt as a share of GDP will decline to 79.1 percent next year from the higher 82.8 percent this year as the government spent profusely in 2020 on coronavirus-related aid.