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14 Apr 2015
Softer domestic demand behind weak Chinese data – Danske bank
FXStreet (Edinburgh) - In the opinion of analysts at Danske Bank, the current weakness around the Chinese economy could be a consequence of a softer domestic demand.
Key Quotes
“The sharp contraction in exports in March in our view mainly reflects distortions from the relative late Chinese New Year public holiday in February”.
“China’s export growth should rebound to the 5-7 % y/y range in April and the trade balance surplus will probably again exceed USD40bn”.
“It remains our view that the current weakness in the Chinese economy is primarily driven by weaker domestic demand and only to a lesser degree by weaker exports”.
“This is likely to be reflected in continued subdued import growth with declining import prices also weighing substantially on import growth”.
“Policy-wise we expect more monetary easing but we do expect China to start targeting a weaker CNY to support growth”.
Key Quotes
“The sharp contraction in exports in March in our view mainly reflects distortions from the relative late Chinese New Year public holiday in February”.
“China’s export growth should rebound to the 5-7 % y/y range in April and the trade balance surplus will probably again exceed USD40bn”.
“It remains our view that the current weakness in the Chinese economy is primarily driven by weaker domestic demand and only to a lesser degree by weaker exports”.
“This is likely to be reflected in continued subdued import growth with declining import prices also weighing substantially on import growth”.
“Policy-wise we expect more monetary easing but we do expect China to start targeting a weaker CNY to support growth”.