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CHINA MAY HAVE TO TAKE OUT LOANS

China's soaring trade deficit may have to be financed by borrowing at a time when access to foreign loans is restricted by Western sanctions stemming from the recent political crackdown, economists said Tuesday. They said the deficit is also increasing pressure for a currency devaluation.

The official press said the deficit for the first half of the year soared to $5.7 billion from $1.2 billion in the same period last year, with exports up just 6.5 percent and imports rising 26.7 percent.

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The People's Daily quoted unidentified economists as saying the trade imbalance was widening every day and could exceed $10 billion for 1989.