China, Taiwan and Korean Trade falls from a cliff

The recent export-import data from China, Korea and Taiwanshows the crisis has become much deeper. Earlier we saw the crisis impacting only the financial channel, but now it is impacting the trade channel fully (see a review of these channels here). Economist has an excellent review of recent China trade data and world trade situation.

  • China- exports declined by 2.2% in November compared to November 2007 (also called as year on year growth), ; imports by 17.9%
  • South Korea- exports declined by 18.3% in November (year on year); imports by 14.6%. Exports climbed 8.5 percent in October and 28.2 percent in September.  As a result, Korea cut rates by 100 bps
  • Taiwan-  exports declined by 23.0% in November

What is more worrisome is the sharp fall in trade data. Like the inflation data trade data is falling from the cliff. These are all export driven economies and it clearly suggests economic activity is weakening considerably now. Moreover, exports contribute almost 30% of the world growth and this does not look good at all now.

India also saw a sharp decline in exports and imports in month of October. Exports declined by 12.1% and imports grew at 10.6% (in September it was 10.4% and 43.3% respectively). It looks like we are staring at much worse number from Nov onwards.

Hold on to year seat belts as they say.

6 Responses to “China, Taiwan and Korean Trade falls from a cliff”

  1. Korea » China, India, Malaysia, Korea, Taiwan: Asia Local Bond Preview ... Says:

    […] China, Taiwan and Korean Trade falls from a cliff « Mostly EconomicsThe recent export-import data from China, Korea and Taiwanshows the crisis has become much deeper. Earlier we saw the crisis impacting only the financial channel, but now it is impacting the trade channel fully (see a review of these … […]

  2. Taiwan » just a simple word for a simple life, technology news: Taiwan’s ... Says:

    […] China, Taiwan and Korean Trade falls from a cliff « Mostly EconomicsThe recent export-import data from China, Korea and Taiwanshows the crisis has become much deeper. Earlier we saw the crisis impacting only the financial channel, but now it is impacting the trade channel fully (see a review of these … […]

  3. SEAN.SU Says:

    […] more: China, Taiwan and Korean Trade falls from a cliff « Mostly Economics del.icio.us digg redditWelcome. Type ‘help’ for […]

  4. OPEC cuts prices for the third time « Mostly Economics Says:

    […] Because the increase in demand was coming from emerging economies and mainly from China. Though Chinese economy is expected to slow down severely, I thought existing demand levels should persist or decrease marginally. Even at existing demand […]

  5. Japan, Thailand join the “falling from a cliff” export club « Mostly Economics Says:

    […] Thailand join the “falling from a cliff” export club By Amol Agrawal I had pointed China, Korea, Taiwan and India exports have declined sharply. 2 more Asian countries join the […]

  6. India trade manages to hold on somewhat in November « Mostly Economics Says:

    […] trade manages to hold on somewhat in November By Amol Agrawal I had pointed that China,Korea and Taiwan trade data had declined sharply in November. This was followed by Japan […]

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