China as the largest goods exporter in the world
had an unexpectedly drop in March. This high decreasing export was categorized
as the most declining more than a year. The slope was controverting the median
estimate of 8.2 percent rise.
China overseas shipment fel14.6 percent in yuan
value and import drop 12.3 percent walking from 18.16 billion yuan surplus or
$3bn. The global demand durability is on question because of this. There has
been a weakened in consumption, declining in investment, and the exports have
become weaker than expected in China. An economist said that downward pressure
on economic growth was increasing, making it more urgent for the government to
start rolling out more pro-growth policies. Before, the country’s central bank
has lighten the rules on home purchasing, cut interest rates twice, and reduce
the amount bank have to set aside in regard of economist prediction further
stimulus.
The deflation of China’s exports has influenced the
Australian dollar. As the Australia’s shipment of raw material such as iron ore
fell down after the release. Because of the analyst prediction, it is said that
Chinese stocks rallied on bets for further stimulus.
Analyst said that recent indicator on China’s export
and economic growth showed further sign of continuing slowdown. The weakened of
external demand, low commodity price, and slow economic growth become
challenges that the country has to face immediately. The slowing down of China’s
progressing affected a prediction about a slightly slower economic growth in
East Asian.
Decreasing exports goods means a drop of raw
material imports. However, there was an increasing in imports of goods
consumed. It is suggested that the domestic demand has been improving and the
recent policy easing has escalated domestic buying power.