MONEY MATTERS

The last 13 months saw no improvement in the export section of China. But there has been a strong growth from last December, as exports have bounced back to life. This has made China the world’s largest exporter pushing Germany behind. After a year and a half of steep declines China’s exports increased by 17.7% in December from a year ago. As a result of the economic slowdown, exports were down by 20%. Imports last month recorded an even stronger rebound, growing 56%, according to figures released by the General Administration of Customs (GAC) on Sunday.
Sunday’s figures take China’s exports to $1.2 trillion in 2009. This marks a 16% fall from the previous year, but suggests China will still overtake Germany to become the world’s biggest exporter in 2009, with German exports estimated at around $1.1 trillion last year. The Sunday’s data has been an important turning point for China’s export sector, which has suffered badly in the wake of the financial crisis. An estimated 1,00,000 factories closed down as a result of falling demand from the West, as China’s export- led growth suffered its biggest setback in decades.
The reason for the sudden revival is largely due to the Government’s $586 billion stimulus spending. Record spending on infrastructure projects propelled the economy to register 8.9% growth in the third quarter of last year, keeping the country on track to meet its 8% annual growth target.

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