Global Economy

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<b>China’s Exports Shrink, Output Cools, Adviser Says</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Dec. 9 (Bloomberg) -- China’s exports shrank last month and industrial-production growth cooled, Fan Gang, an adviser to the People’s Bank of China, said today.

“<b>Things are not so good,” Fan said at a forum in Beijing. “November figures will come out soon, and industrial growth will be something around 5 percent and export growth will be negative.” </b>

<b>A collapse from October’s 19.2 percent export growth </b>would add pressure on policy makers meeting in Beijing this week to do more to sustain the expansion of the world’s fourth-biggest economy. The government has already unveiled a 4 trillion yuan ($582 billion) stimulus package and cut interest rates by the most in 11 years as a global recession cuts demand for the nation’s toys, textiles and electronics.

“It doesn’t really matter what China does to try to revive exports, they are going to be bad for the foreseeable future,” said Paul Cavey, an economist with Macquarie Securities in Hong Kong. “The key now is what can be done to boost domestic demand.”

China’s exports last fell in June 2001.
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