Analysts speculated that Fortescue's
weak export rate in October and November may be linked to the Chinese shutdowns and the middle kingdom's growing preference for iron ore with higher grades than Fortescue typically produces.
Not exact matches
With the domestic economy too
weak to maintain China's high growth
rates, and with
exports to the West hurting, the Communist Party in Beijing and its regional offshoots have come to rely heavily on cheap
exports and debt - fuelled investment to sustain China's fragile fortunes.
Poloz says the only
rate he cares about is inflation, and virtually every piece of official communication from the central bank notes the boost that non-energy
exports are getting from the
weaker exchange
rate.
China's surprise decision to revalue the yuan as it tried to contain the stock market turmoil caused the currency to drop the most in 21 years last month, triggering exchange -
rate declines elsewhere in the emerging world on concern that a
weaker yuan will hurt countries
exporting to China.
To ensure sustainable growth, it needs to reduce the dependence on
exports and fixed asset investment and to increase domestic consumption — but the
rate of consumption growth remains
weak.
Exports grew by an unexpectedly
weak 4.7 percent, down from October's 10.6 percent
rate.
Otherwise devaluation or exchange
rate depreciation is supposed to help a
weak economy dampen unemployment by lowering real wages or by stimulating real growth through greater real
exports.
Manufacturing production rose at the slowest pace for a year, as
rates of expansion in new business and new
export orders eased to the
weakest since April 2015 and January 2015 respectively.
A recovery in the value of dairy products, New Zealand's biggest
export, may bolster the nation's economic growth and make the central bank wary of cutting interest
rates much further to boost
weak inflation.
That doesn't mean the exchange
rates don't shift down in the process, though, and
exports seem to be improving because of the
weaker dollar.
The report does contain some good news for Ontario, which will see an
export - led revival to 2.3 per cent growth this year — the second - highest
rate in the country — after advancing by a
weak 1.3 per cent the previous two years.
While a
weaker dollar may boost U.S.
exports and the profits of U.S. companies with overseas operations,
weaker foreign demand for U.S. Treasury bonds would push up long - term interest
rates, raising mortgage payments for U.S. homeowners and borrowing costs for an indebted government.