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China Exports Rise Sharply; Imports Fall More Than Forecast
(RTTNews) - China's exports increased sharply in March as US importers front loaded their orders ahead of "Liberation Day" but imports declined due to weaker domestic demand, official data revealed on Monday.
Exports logged an annual growth of 12.4 percent in March, the customs office reported. This was much bigger than the expected growth of 4.4 percent. Moreover, the rate far exceeded the 2.3 percent rise posted in the January to February period. Meanwhile, imports fell 4.3 percent annually, worse than economists' forecast of 2.0 percent decrease. Imports had declined 8.5 percent in the January to February period. As a result, the trade balance posted a surplus of $102.6 billion in March. This was well above the expected level of $74.3 billion.
Capital Economics economist Julian Evans-Pritchard said the increase in exports suggests that manufacturers rushed to ship goods to the US ahead of "Liberation Day".
But shipments are likely to drop back over the coming months and quarters, the economist noted. "We think it could be years before Chinese exports regain current levels," he added.
China's trade surplus with the US totalled $27.6 billion in March as exports grew 4.5 percent. ING economist Lynn Song said China's exports shrugged off early tariffs. However, with a staggering 145 percent tariffs coming into effect, it is likely that next month's data will tell a dramatically different story, the economist noted.
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