China exports weaken, signaling more headwinds for growth

http://www.straitstimes.com/business/economy/china-exports-weaken-signaling-more-headwinds-for-growth

 

The article discusses the impact of continuing decrease in Exports on the Economic Growth rates in China. As a result of the low demand worldwide, the trade surplus figures are lower, than predicted earlier, at 49.9 billion dollars instead of 58 billion dollars. The dependency of Chinese Economy on Exports has resulted in difficult and challenging circumstances for the Domestic Producers with decrease in manufacturing.

 

Topics include Depreciation on account of decrease in Exports, Managed Float Exchange Rate system, Balance of Payments and Effects of Depreciation on the International Trade and economic Growth of the country. Explain the causes and the expected effects of Decreasing Trade surplus and consequent pressures on Currency in a recessionary economy using the Exchange Rate diagrams .

 

Evaluation will cover effect of Balance of Payments and depleting Trade Surplus and Current Account Deficit on the Chinese Economy with emphasis on Domestic Producers, Consumers and Government.

 

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