China’s export and import growth in the January-February period beat forecasts, suggesting global trade is turning a corner in an encouraging signal for policymakers as they try to shore up a stuttering economic recovery.
China’s improved export data joins those of South Korea and Germany, and Taiwan, who all saw their shipments top expectations over the first two months of the year, with the Asian economies benefiting from a surge in demand for semiconductors.
Exports from the world’s second-biggest economy in the two months were 7.1% higher than a year before, customs data showed on Thursday, beating a Reuters a poll that expected an increase of 1.9%. Imports were up 3.5%, compared with a poll forecast for growth of 1.5%.
“The better-than-forecast data echoes a recovery in global trade driven by the electronics sector, but also benefits from a low base effect, as export growth in January-February 2023 was -6.8%,” said Xu Tianchen, senior economist at the Economist Intelligence Unit.
Chinese Premier Li Qiang on Tuesday announced a 2024 economic growth target similar to last year of around 5% and promised to transform the country’s development model, which is heavily reliant on exporting finished goods and industrial overcapacity.
Policymakers have been grappling with sub-par growth over the past year amid a property crisis and as consumers hold off spending, foreign firms divest, manufacturers struggle for buyers, and local governments contend with huge debt burdens.
Source: Reuters
