Sources say that Akeman Capital feel that China’s trade surpls increase could be a sign that the world's fourth-biggest economy will continue to power global growth as a recession looms in the U.S.
Akeman Capital sources have reportedly stated that the gap in trade surplus widened by more than 20% from the previous year to approximately $19.5 billion. This figure was significantly higher than the $17 billion estimated by some economists earlier in the year.
A senior analyst at Akeman Capital apparently speculated that China's economy will expand by a further 10 percent this year amidst a spreading financial crisis sparked by the U.S. housing slump. The Akeman Capital analysts went on to state that the growth momentum in China's economy may prove to be a sufficient balance for the turmoil in the US economy.
Sources say that research by Akeman Capital had revealed that China and the U.S. were the biggest contributors to global growth in 2007.
A spokesman for Akeman Capital reportedly stated that growth in the U.S. had slowed notably in the fourth quarter of 2007, adding that this could fuel the existing fears of an impending US recession.
