China’s exports declined at a faster pace at the end of the year as the global demand weakens amid fears of a recession, and also due to the domestic pandemic-related restrictions that continued to disrupt the industrial activity.<\/p>\n
The annual decline in exports worsened to 9.9 percent in December from 8.9 percent in November, the General Administration of Customs reportedly said Friday. The year-on-year fall was almost in line with economists’ forecast of -10.0 percent. <\/p>\n
At the same time, imports eased 7.5 percent from a year ago, which was slower than the 10.6 percent drop registered in November, and also the expected decrease of 9.8 percent.<\/p>\n
As a result, the trade balance showed a surplus of $78 billion, which was larger than the forecast of $76.2 billion.<\/p>\n
With the economic growth outside of China slowing, exports are set to continue to contract until the middle of the year, Capital Economics economist Zichun Huang said.<\/p>\n
However, the economist said the rapid fading of virus disruptions as China adapts to living with COVID-19, along with broader policy support, will drive a sharp recovery in domestic demand that will lift imports. <\/p>\n
Despite the weakening demand from the US and Europe, China’s exports increased 7 percent from a year ago, taking the trade surplus to a record $877.6 billion. Imports grew only 1.1 percent in 2022.<\/p>\n