China’s trade exceeds expectations during January and February

Growth in Chinese exports and imports during January and February exceeded expectations, reflecting improving global trade and giving an encouraging signal to policymakers after a prolonged slowdown in the manufacturing sector was a drag on the economy.

According to Reuters, Chinese customs data showed on Thursday that China’s exports in the two months were 7.1% higher than the previous year, exceeding the 1.9% growth that experts expected in a survey. Imports rose 3.5 percent, compared to expectations of a 1.5 percent rise.

Customs published consolidated trade data for the months of January and February to mitigate distortions resulting from the change in the date of Lunar New Year celebrations, which this year fell in February.

Prime Minister Li Keqiang announced on Tuesday that the growth target for 2024 is about 5% and promised to transform the country’s economic development model.

The world’s second-largest economy recorded substandard growth last year amid a real estate crisis, consumers’ reluctance to spend, foreign companies withdrawing their investments, and manufacturers experiencing difficulties in finding buyers. Local governments also face huge debt burdens.

China’s trade surplus grew to $125.16 billion, compared to expectations of $103.7 billion in the survey and $75.3 billion in December.