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Business / Top News

Stable recovery for exports

By BAO CHANG (China Daily) Updated: 2013-04-19 01:40

Shen said: "Although we see a recovering momentum, factors including weak foreign demand, rising costs and an unfavorable trading environment still exist and influence the growth of total exports. The development of China's exports is still facing a complicated external environment."

Seventy-seven percent of trading enterprises said they believe weak foreign-market demand influenced the country's total exports, with 55.7 percent thinking rising costs are the key influential factor.

Mei Xinyu, a researcher with the International Trade and Economic Cooperation Institute at the Ministry of Commerce, said China's total exports will continue to grow slowly this year.

"The government should accelerate the implementation of fiscal and financial policies targeted at maintaining stable export growth. Overseas construction contracting will be further boosted as foreign aid to some of China's trading partners," Mei said.

Domestic consumption is playing a key role in driving economic growth. Consumption's contribution to total GDP for the first quarter reached 55.5 percent, 3.7 percentage points higher than the figure for last year, the ministry said.

Retail sales are expected to show a 14.5 percent increase in 2013, with consumer goods sales rebounding in the third and fourth quarters fueled by an improved macroeconomic situation and investment environment, the ministry said.

Shen noted that market price growth of goods began to fall in the first quarter. Spending on auto and petroleum products dropped, obviously due to the purchasing limitation policy.

Demand for petroleum products may also have fallen due to weather conditions and a slowdown in the growth of urban and rural incomes. "All these will result in a receding tendency for consumer market growth for the first two quarters," Shen said.

Purchasing limits on autos have been introduced in Beijing, Shanghai and Guangzhou in an attempt to reduce traffic congestion and pollution.

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