world growth

world growth

Saturday, June 7, 2008

China's trade surplus to shrink for first time in five years

This is from AFP. I think this is actually a good news. China already has more than 1.7 trillion dollars of foriegn reserves. Why collect more dollars when the value of U.S. dollar is going down in a free fall. Besides, China needs to import a lot of materials for the upcoming Olympics and earthquake relief works.

China's trade surplus to shrink for first time in five years: govt

BEIJING (AFP) — China's trade surplus is likely to shrink in 2008 for the first time in five years as exports slow due mainly to the rising local currency and the US economic slowdown, the government said Thursday.

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China's trade surplus hit 58 billion dollars in the first four months of the year, down 7.9 percent from the same period in 2007.
The surplus had surged to a record 262.2 billion dollars last year, up 47.7 percent from 2006. Last year's figure was a 10-fold rise from 2003, when the surplus first started to expand dramatically.


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The yuan has risen steadily from 8.3 to the US dollar about three years ago to roughly 6.9 currently since China loosened its peg to the greenback.

Full article at : http://afp.google.com/article/ALeqM5jX41-t9OFMlNliwD4IkMK68SXlOg

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