China’s exports continued to decline at the start of the year, reflecting the challenges posed by the global economy<\/span> that constrained the ability of Beijing to set robust growth target.<\/p>\n
Exports declined 6.8 percent in the January to February period from the same period last year, the General Administration of Customs reported Tuesday. <\/p>\n
The annual decrease was slower than the 9.9 percent drop posted in December and also better than economists’ forecast of 9.4 percent fall. <\/p>\n
Despite re-opening of the economy, imports logged a double-digit decline of 10.2 percent in the January to February period that was worse than December’s 7.5 percent decrease and the expected 5.5 percent fall. <\/p>\n
Consequently, the trade balance showed a surplus of about $117 billion, which was well above the forecast of $81.8 billion. <\/p>\n
The customs office usually combines data for January and February to avoid distortions caused by the Lunar New Year holiday.<\/p>\n
The trade surplus is likely to decline before long, Capital Economics economist Julian Evans-Pritchard said. <\/p>\n
The National People’s Congress signaled relatively modest policy support this year, but imports should rebound as the shift away from zero-COVID drives a recovery in travel, and therefore fuel demand, the economist noted. <\/p>\n
However, exports are set to struggle in the near-term due to the weak global backdrop, Evans-Pritchard added.<\/p>\n
The government announced a growth target of around 5.0 percent for this year over the weekend. The second-largest economy grew only 3.0 percent in 2022 to mark the weakest expansion in decades.<\/p>\n
Outgoing Premier Li Keqiang warned about the challenges the economy confronts from the external environment amid sanctions and restrictions imposed by the US government that limit the access to technology<\/span>. <\/p>\n
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