- Liu Xuezhi, an economist with Bank of Communications Co.
China's exports unexpectedly plummeted in March, deepening concerns about faltering growth of the world's second biggest economy. While economists had predicted a 12% rise, exports plunged 14.6% in March from the same period last year. Imports, meanwhile, tumbled 12.3% worse than the expected 11.7% decline and after diving 20.5% in the previous month, resulting in a trade surplus of 18.16 billion yuan. The data halted a week-long advance in the Australian Dollar, which slid to $0.7630 from $0.7665 before the release of the news. Being hit by weak foreign and domestic demand, China's trade sector has faltered in the past year on the back of the country's cooling economy, unsettling officials.
China's economy has be hurt in recent years by a weak external economic landscape, downturn in the property market and lukewarm domestic consumption. All eyes turn to the first-quarter gross domestic product data, which are estimated to show the world's second biggest economy expanding 7.0% on year. The Chinese government has set 2015 growth target at "around 7%," after the economy grew 7.4% in 2014, the slowest pace in 24 years. In order to underpin the slowing economy, the People's Bank of China has unleashed a series of stimulus measures since November last year, including cutting interest rates twice and lowering the reserve requirement ratios of major banks once.
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