CHINA.

TRADE SURPLUS.

Muriel Elizabeth Hayes

November 14, 2008

China’s trade surplus rose to US$35 billion in October, hitting a record for the third month in a row.

The surplus rose 20% from September to October, according to the Customs Department in Beijing.

Despite the rise, there were signs that foreign demand for Chinese goods, was beginning to slow amid the downturn.

Separate data showed inflation fell to a 17 month low, increasing the chance of further interest rate cuts, as China acts to boost the economy.

China has set out a US$586 billion economic stimulus package, to counter foreign demand, by boosting domestic spending.

The plan announced on Sunday, is aimed at increasing domestic growth by cutting taxes and investing in infrastructure.

The Central Bank of China, expects growth to slow down to 8-9%, still amazing figures compared to the rest of the world.

Source:

Muriel Elizabeth Hayes

Buenos Aires, Argentina