Why you should worry about ChinaMads Koefoed
China has warned of a grim trade outlook after reporting a fall in exports and imports, when both had been expected to rise.
Saxo Bank’s Mads Koefoed says the data only confirmed what we already knew; "that the days of 10 percent growth in China are over and year on year we will see a continued slowdown."
Exports fell 3.1 percent in June; they had been expected to rise 4 percent.
On Monday Premier Li Keqiang expressed general satisfaction with the way things are going, describing the slowdown as part of the country’s efforts to rebalance the economy. But any continued slide in economic performance could test his resolve.
Mads says although longer term they are on the right track, there is now a lot of pressure on the Chinese authority to come up with some kind of fiscal stimulus.