The Chinese economy is extremely dependent on exports while it’s slowly developing its domestic economy.
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New York, NY (PRWEB) October 22, 2012
In a recent Investment Contrarians article, editor Sasha Cekerevac reports that Chinese exports for September grew 9.9% from the same period last year, almost double what the investment community expected. (Source: “China Sept. Exports Jump 9.9%, Imports up 2.4%,” The China Post October 14, 2012.) And, as Cekerevac notes, the Chinese economy has a large influence on worldwide economic growth. According to Cekerevac, this means that if China’s exports are indeed improving, then some economies around the world also must be improving.
“The Chinese economy is extremely dependent on exports while it’s slowly developing its domestic economy,” explains Cekerevac, pointing to the European Union (EU) as one of China’s top trading partners.
According to Cekerevac, the EU is a disproportionately large and important destination for the Chinese economy. He points out that the overall increase was startling, following September’s fall in exports due to a stagnant economy in the EU.
“Exports to America were up 5.5% for the September period as compared to year-ago levels,” reports Cekerevac. “Neighboring South East Asian countries saw the biggest jump in exports at 25.5% for the month. This included Taiwan, up 19.9%, and South Korea, up nine percent.”
(Source: “China Sept. Exports Jump 9.9%, Imports up 2.4%,” The China Post October 14, 2012.)
Cekerevac notes that government officials should be announcing gross domestic product (GDP) numbers for the Chinese economy shortly. The Investment Contrarians editor points out that data regarding purchases by other nations are far more credible sources of information, and the numbers should reveal whether economic growth will be re-ignited.
Cekerevac concludes by noting, “The most important thing for investors to realize is that the absolute number is not as important as the way in which the data is leaning… Not only was this export data better than expected, but it was almost twice as good. This is something that should certainly open one’s eyes to the possibility that economic growth in 2013 might be stronger than consensus.”
To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing, and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work, and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
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Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.