China’s exports rose at the slowest pace in almost two years in October as Europe’s deepening debt crisis crimped demand, adding pressure on policy makers to support growth in the world’s second-biggest economy.
Overseas shipments rose 15.9 percent from a year earlier, customs bureau data showed today. The trade surplus was $17 billion, lower than all 24 estimates in a Bloomberg News survey. Imports climbed a more-than-forecast 28.7 percent.
Asian stocks slumped after a jump in Italian bond yields fanned concern Europe’s currency union will unravel and cause a recession in China’s largest export market. Chinese data yesterday showing inflation slowed, home sales fell and industrial output cooled have added to the case for the government to ease credit controls and cut taxes.
Asia Slowdown
Overseas sales were $157.5 billion in October, the lowest in five months. That was also the smallest year-on-year increase since gains resumed in December 2009 after the global financial crisis, excluding holiday distortions. The growth rate compared with a median estimate of 16.1 percent in a Bloomberg survey.
Europe’s malaise is taking its toll on other Asian economies. South Korea’s exports rose the least in two years last month and may ease further in the fourth quarter, according to the Ministry of Knowledge Economy. A slowdown in overseas sales contributed to the smallest quarterly growth in Taiwan’s economy in two years, the government said Nov. 1.
