Bloomberg: China Eating Up Larger Chunk Of Global Trade
- According to a Bloomberg report last week, “China is eating up a larger chunk of the world’s shrinking trade pie.” International Monetary Fund (IMF) data found China’s global export share was at 14.6 percent in 2015, the highest proportion of world exports ever held by one country, up from 12.9 percent in 2014. AMP Capital Investors Director of Investment Strategy Shane Oliver said, “All the talk we have heard over the last few years about China losing its global competitive advantage is nonsense.” Following the release of the IMF data, China announced trade data for August. According to the Chinese government, exports from the country were down 2.8 percent in dollar terms between August 2015 and August 2016 while imports were up 1.5 percent year-over-year.
- Industrial output in the United Kingdom rose 0.1 percent in July (analysts had expected a 0.3 percent contraction) while production at factories was down 0.9 percent. The positive overall reading was due in large part to a 5.6 percent increase in oil and gas production in the North Sea. The Wall Street Journal said the data “confirm earlier signs that the uncertainty caused by the U.K. vote to leave the European Union may have weighed on manufacturing in the immediate aftermath of the June 23 vote, though subsequent surveys signaled an August rebound.”