Widens the trade deficit for China - CNNMoney

In June, China has reported a trade surplus of $ 22.3 billion.

NEW YORK (CNNMoney)--China's trade surplus continues to grow in June, while the plant to export manufacturing sector slowed slightly.

China has a surplus of 22.3 billion in June, up to a surplus of 13.05 billion in may, General Administration of customs of China, said Saturday. A trade surplus occurs when a country's exports are more numerous than its imports.

China is the second largest economy in the world and the partner business number one in the United States.

But as the economic growth of China far exceeded the stagnation of the growth in the United States, it has tried to encourage domestic consumption more and less emphasis on exports.

Surging growth in exports to China, but recently it has slightly slowed. In June, exports totalled 162 billion, an increase of 17.9% year.

That marks a slight slowdown to a growth rate of 19.4% in May.

Meanwhile, imports increased at an annual rate of 19.3%, 139.7 billion in June.

Earlier this month, other government data showed slowed the manufacturing sector of China and new export orders declined in June.

Contrary to American popular belief, the comte exports a very small percentage of the overall economy of China, according to Carl Weinberg, Chief Economist for high frequency economics.

Rather, economic growth in China is more motivated by its rapid modernization, as its rural poor starts in its sprawling cities.

"Their trade balance is quite good darn and is going to remain healthy, but trade is not as important to the economy that we believe it is, he said." With 900 million people left on farms to move to the cities, it is what is happening to stimulate growth. »

China said Friday that in June consumer prices rose 6.4% over last year, mainly to the high prices of pork and other foods.

China should also report its second product domestic crude quarter figures Wednesday. Its economy grew at an annualized rate of 9.7% in the first quarter.

Helena Hong-CNN Beijing contributed to this report

First published: 9 July 2011: 11 pm et

Critical deficit reduction says (Reuters) IMF's Lipsky

DENVER (Reuters) - a senior official of the IMF warned Saturday that the U.S. must start on a path of deficit-cutting the budget relatively low or facing overwhelming debt rising interest rates.

"A time - wasting," John Lipsky, first Deputy Director General of the IMF International, said in a speech at the annual Conference of American Economics Association here. "It is essential to establish the basis for credible medium-term budgetary adjustment," he said.

Lipsky welcomed the measures recently by U.S. Governors of central banks and politicians in support of a weak economic recovery with monetary policy and fiscal expansionists. However, he said that these steps make it less likely that US can achieve goals to reduce its deficit in half by 2013.

Fiscal and monetary stimulus measures is controversial. The Federal Reserve in November sparked outrage with binding - plan buy $ 600 billion that national and international critics protested would weaken the dollar and lay the groundwork for a burst of inflation.

President Barack Obama and Congress agreed in December to a tax package 858 billion dollars to support economic growth, but quailed sound bond markets deepening budget deficits 1.3 trillion dollars.

Although short-term budgetary consolidation measures might affect economic growth and will be politically controversial long term they will be stronger growth, said Lipsky.

The risk is that if the US can not soon trim its deficit, doubts about America's financial position could push interest rates higher than longer term, he said.

U.S. legislators concerned about the deficit grow with spending cuts, but face opposition from other concerned listening exercise brake too early could delay the fragile economic recovery.

The Government debt crises that have recently introduced Ireland, Spain and the Portugal have raised concerns about the solvency of the greatest nations and led many to wonder how long the United States can support high levels of deficit.

While Republicans in the United States were the most vocal in calling for reductions in expenditures and rolled a rallying cry of deficit-cutting large gains in November's election, they have supported so far of the commitments to reduce spending.

Lipsky praised a proposal by a presidential commission for the United States to trim the deficit with a review of major tax code and deep spending cuts. While the plan was controversial, he collected more political than expected support.

However, the commission has always lacked sufficient support to the force of action of the Congress and there is little expectation that tax review will take place this year.

(Reporting by Mark Felsenthal.) (Editing by Leslie Adler)