Chinese exports, imports down in January and February ‎

Chinese exports declined in January and February, indicating continued weak demand for the country’s products, which supports the government’s fears that the global slowdown will affect its economy.

According to “Reuters”, government data showed today, Tuesday, a decrease in imports as well, which also reflects weak external demand, as China imports from abroad the parts and raw materials needed for many of its exports.

Exports fell 6.8 percent in the two months from the same period last year, after falling 9.9 percent year-on-year in December. However, the decline was better than the average forecast in a Reuters survey, which predicted a decline of 9.4 percent.

Imports fell 10.2 percent, far outpacing estimates in the survey of just a 5.5 percent decline. Imports fell 7.5 percent in December from a year earlier

On Thursday, Chinese Minister of Commerce Wang Wentao warned that downward pressure on Chinese imports and exports will increase significantly this year due to the possibility of a global recession and weak external demand.

China has set a target for GDP growth this year at about five percent, after its economy, the second largest in the world, recorded one of the slowest levels of growth in decades in 2022. And China’s gross domestic product had grown by only three percent in 2021.

Economists expect Chinese imports to recover gradually as consumer confidence improves after restrictions related to the Corona pandemic were lifted in December, but they say that the economic slowdown abroad may reduce the volume of goods imported to China.

China’s imports of crude oil fell 1.3 percent in the first two months of this year compared to their level a year ago, while its imports of natural gas fell 9.4 percent. However, imports of coal and soybeans jumped due to improved domestic demand.