14 Jan 2009

China's exports in record decline

7:14 am on 14 January 2009

Exports from China have dropped in their biggest decline in a decade.

The China Daily reports exports in December were down 2.8% from the same time last year, a bigger decline than a 2.2% drop in November.

According to JP Morgan, December's decline was the sharpest since April 1999.

The BBC reports the numbers provide fresh evidence of a serious trade slump that has caused a wave of factory closures and layoffs.

The China Daily also reported imports in December fell by 21.3% following a fall of 17.9% in November.

With exports in December worth $US111.2 billion, and imports worth $US72.2 billion, December's trade surplus was $US39 billion.

The BBC reports it is China's second highest trade surplus ever, just below a record $US40.1 billion in November.

However, the World Bank predicts growth for 2009 will be 7.5% - the lowest recorded since 1990.