Monday, 12 March 2012

China reports large trade deficit as imports surge

China posted its largest trade deficit in at least a decade in February after imports of commodities jumped as companies built up supplies. The deficit was $31.5bn (£20bn) after imports rose 39.6% from a year earlier and exports rose 18.4%, the customs bureau said. Analysts said the widening trade gap may signal deeper economic issues that China will need to address. China has an export-led economy but global economic growth remains slow.

Meanwhile prices for many of the raw materials that China needs to fuel its growth are climbing. Faced with these problems many analysts are now predicting that China will have to do something to stimulate its domestic demand.

http://www.bbc.co.uk/news/business-17335934