United States Trade Deficit Unexpectedly Rises

The U.S. trade deficit unexpectedly widened in June with exports posting the largest drop in more than a year, the Commerce Department reported Wednesday.
The trade deficit rose to 49.9 billion dollars in June, an increase of 18.8 percent from May. That was the highest level since October 2008 when the deficit stood at 59.4 billion dollars. Economists had expected a decline in the trade gap due to lower global oil prices.
Imports rose 3 percent in June to 200.3 billion dollars, while exports dropped 1.3 percent to 150.5 billion dollars, the largest decline since April 2009.
The gain in imports reflected growing U.S. demand for foreign goods and services as the economic recovery unfolds, while the decline in exports indicated that demand from overseas markets may provide less support for the U.S. economy than previously anticipated.
June's export data may bring a blow to the Obama administration's export enhancement strategy, something heavily touted by the president as a useful weapon to prop up the economy.
Obama launched the National Export Initiative during his State of the Union address in January as part of a broad economic plan to stimulate economic and job growth, with a goal of doubling exports over five years.
Source: http://news.xinhuanet.com/english2010/world/2010-08/11/c_13440659.htm

China's Export Value Hits Record US$145.52 bln in July

China, the world's largest exporter, saw its export value jump 38.1% year on year to record US$137.4 billion in July this year, according to statistics released by the General Administration of Customs.

Last month, China's imports grew 22.7% year on year to US$116.79 billion, bringing the country's foreign trade value to record US$262.31 billion in the month.

In the first seven months of this year, the country's value of imports and exports jumped 40.9% year on year to US$1.62 trillion. China exported US$850.49 billion worth of goods, up 35.6% year on year, while the import value increased 47.2% to US$766.56 billion. Trade surplus decreased 21.2% to US$83.93 billion during the period, according to the statistics.

In the first seven months, the value of exports and imports in ordinary trade increased 44.3% year on year to US$812.11 billion, including US$390.12 billion in export value and US$421.99 billion in import value.

Total bilateral trade value between the EU and China rose 36.6% year on year to US$263.16 billion, and trade value between the U.S. and China was US$207.23 billion. Japan is the third-biggest trade partner of China with total trade value of US$161.71 billion.

Guangdong Province ranked first with US$413.93 billion in terms of total trade value in the period, followed by Jiangsu Province, Shanghai and Beijing with US$255.8 billion, US$204.32 billion and US$169.52 billion, respectively.

Source: http://www.chinaknowledge.com/Newswires/News_Detail.aspx?type=1&cat=INS&NewsID=36117

Bulgaria's Export to China Up by 240% in January-May 2010

Bulgaria’s export for China grew by the staggering 238% in the first five months of 2010 year-on-year.

According to data released recently by the Bulgarian National Statistical Institute, in January-May 2009, the Bulgarian export to the People’s Republic of China amounted to BGN 50.3 M, whereas in the same period of 2010 it is already BGN 170 M.

Bulgaria exports to China some hi-tech equipment items as well as copper ores and concentrates, copper alloys, lead, wines, yogurt leavening agent, cigarettes.

In the first five months of 2010, Bulgaria’s import from China declined by 18.2%. Its January-May 2009 export amounted to BGN 420 M, while it went down to BGN 343 M for the same period in 2010.

Thus, Bulgaria still has a huge trade deficit in its trade with the People’s Republic – BGN 173 M in January-May 2010. There is, however, a notable improvement from the deficit of BGN 369 M registered in the same period of 2009.

Single year's corn import quantity exceeds past decade's

Though as a large, self-sufficient grain producer, the quantity of corn China has imported this year was more than the total amount of the past 15 years, making it a 10-year record, according to media reports.

Data from China customs showed that from January to May of this year, the country had imported 23,500 tons, while the amount for the entire last year was of 2,150 tons.

According to Huang Liqun, with a Shanghai-based consultant firm, the reason of such increase is the 20-percent corn-output decrease in the country's Northeastern region, and a considerable increase in corn-processing demand.

The occasion is causing farm owners to leap with joy. But their enthusiasm is likely to be hit by the overseas market. Enjoying government protection, China's corn prices have maintained at high prices, while the US's corn prices were much cheaper than those in China, an insider at a Jilin-based corn-processing firm said.

In addition, 60 percent of all imported corn is genetically modified (GM).

Some analysts argue that opening up the door for corn imports can curb the high prices, thus, the country will be able to stabilize the domestic market through the international market. Some others object by saying that China should be in favor of farmer's benefits and protect them.

Import and export prices decrease in June

U.S. import prices declined for the second consecutive month in June, decreasing 1.3 percent. The drop was driven by declining fuel prices, although a downturn in nonfuel prices also contributed to the overall decrease. Export prices also fell in June, edging down 0.2 percent following three consecutive monthly increases.

In June, prices of U.S. imports fell 1.3 percent, after a 0.5-percent drop the previous month. The decrease was the largest monthly decline since a 1.3-percent decline in January 2009, which was also the last time the index fell in consecutive months. Despite the recent declines, import prices advanced 4.5 percent for the year ended in June.

Import fuel prices fell 4.0 percent in June, after a similar 4.1-percent decrease in May. The June decline was led by a 4.4-percent drop in petroleum prices and was the largest monthly decrease for that index since a 4.6-percent drop in January 2009. Partially offsetting the decline in petroleum prices, natural gas prices rose 1.5 percent in June. Despite the recent decreases, overall fuel prices increased 11.6 percent over the past year.

In June, the price index for import prices excluding fuel fell 0.6 percent, the first monthly decline since a 0.2-percent decrease in July 2009 and the largest since a 0.6-percent drop in March 2009. A 1.5-percent downturn in nonfuel industrial supplies and materials was the largest contributor to the June decline. For the 12 months ended in June, nonfuel import prices advanced 2.8 percent.

Higher import, export growth seen for 2010

ECONOMIC MANAGERS have become more optimistic about this year’s trade prospects -- a view supported by latest data -- but top exporters are tempering their expectations given continued global uncertainty.Officials said the interagency Development Budget Coordination Committee (DBCC) on Friday approved a recommendation to raise this year’s export and import growth targets, ahead of yesterday’s announcement of a 37.3% export surge in May.

The government now expects 2010 outbound shipments to grow by 15% to $43.1 billion, up from the 12% forecast (equal to $42 billion) approved last month, a DBCC document obtained by BusinessWorld showed.The 2010 import growth target, meanwhile, was raised to 20% from 18%, or $55.7 billion from $54.7 billion previously.

The latest assumptions mean a projected trade deficit of $12.6 billion this year, the widest since 2000 but narrower than the initial forecast of $12.7 billion. The trade gap was $4.7 billion in 2009.The Philippines last recorded a trade surplus in 2000, amounting to $3.6 billion.

Source: http://www.bworldonline.com/main/content.php?id=14180

Import and export prices rise in Spain for the sixth month in a row For Industrial Sector

The import prices of industrial products, in May, rose 10.2% over the same month in 2009, while exports rose 5.5% percent, which both accumulate six consecutive months of increases.

The activities that most influenced the year-on-year growth of export prices in May were metallurgy, with an annual rate of 27.3%, the paper industry, with a rate of 12.7% and the chemical industry, which had a rate of 6.6%.Industrial import and export prices rise in Spain for the sixth month in a row.

According to data released today by the National Statistics Institute (INE), the prices of imports rose by more than two points in May compared to April, mainly by the extraction of crude oil and natural gas sector, whose rate rose to 39.3% this year because prices have been higher than the same month of 2009.

Regarding exports data the activities that most influenced the rise, which was more than one point to April, were mainly due to the metal, manufacture of iron, steel and ferroalloys, which stood at an annual rate 27.3% due to higher prices this month in connection with the decline that occurred last year.