The annual growth in imports and exports of China turned sluggish in October, indicating signs of fragility in the second largest economy of the world.
The data released on Saturday also reinforced towards prompt action from the policymakers to roll over more stimulus measures.
The Asian country’s annual exports increased 11.6 percent last month from a year earlier, declining from September’s pace of 15.3 percent, the report by General Administration of Customs showed on Saturday.
On the other hand, the annual imports grew 4.6 percent in October, slowing from September’s 7 percent increase.
But the exports and imports figures left the Asia’s largest economy with a trade surplus of USD 45.4 billion in October, approaching record highs.
Even though the exports and imports slowed down in October, the trade figures were slightly above the market expectations.
There was a 5.5 percent increase in imports, a 10.6 percent surge in exports and a trade surplus of USD 42 billion, according to the comparison of the official figures with market expectations suggested by a news agency poll.
Because of the firmer demand from the US and Europe, China’s exports turned as one of the lone bright spots for the country’s economic growth.
Annual growth in China slowed to 7.3 percent in the third quarter since the 2007-08 global financial recession.
According to the recent surveys for purchasing managers on services and factory showed that the Asian country’s economy lost further momentum while heading towards the fourth quarter as a cooling property market weighed on export and activity demand softened, making the country’s official target for 2104 at even greater risk.
China’s cabinet on Thursday unveiled detailed measures to support imports of range of products including high-tech equipment, consumer goods and resource products as a part of its efforts to boost the economic growth while rebalancing trade in the country.
The reformative measures announced by the government included impressive tax breaks, cheaper loans and currency hedging tools to exporters.
Seeing the deteriorating mathematical calculations of the economy, Beijing had unveiled a series of “targeted” policy stimulus since April this year, ranging from cut down of reserve requirements for some banks, allowing local governments to loosen property curbs and hastening railways and public housing constructions.
The central bank of China on Thursday vowed to continue with maintaining modest policy support to assist the country’s economic weather rising headwinds in the approaching term but underlined that it would not allow cash overflow in the markets.