19 September 2016
Elissa Braunstein, an economist at UNCTAD, said the drop in imports was puzzling due to reports of a recovery in US demand and the strong dollar, which should make imports cheaper and boost demand.
Following news that US imports from China dropped sharply in July, Elissa Braunstein, an economist at UNCTAD, said:
We'd expect a recovery in US demand and stronger dollar to make imports to the US cheaper and therefore to boost US demand. So it is puzzling to learn that US imports from China have dropped.
Emerging market exporters need external demand, of course. The US had been a rare glimmer of hope in an otherwise gloomy global economy. So this news suggests that life is set to become more difficult for emerging market exporters.
Set for launch on Wednesday, 21 September, this year's Trade and Development Report looks further at concerns about export-led growth.
