March 07, 2023 (MLN): China's exports have continued to decline in the first two months of 2023, according to official data released on Tuesday. The General Administration of Customs reported that outbound shipments fell by 6.8% compared to the same period last year, indicating weakened global demand for Chinese goods. However, the result was better than the 9.9% decline reported in December.
China's customs bureau releases trade data for the first two months of the year together to eliminate distortions caused by the Lunar New Year holiday, which fell in January this year. During this period, China's imports fell by 10.2%, compared with a 7.5% decline in December, highlighting a decline in domestic demand. The trade surplus for the first two months combined was $116.88 billion, higher than December's $78.01 billion, and the $84 billion expected by economists.
The continued fall in exports and imports could signal trouble for China's economy, which has been grappling with a slowdown in growth due to a mix of internal factors, including a crackdown on debt, and external factors, including the ongoing trade tensions with the United States. However, the better-than-expected trade surplus figures could provide some relief for policymakers who have been striving to stabilize the economy.
Overall, the data indicates that China's trade outlook remains uncertain, and the country's policymakers will need to continue navigating a challenging economic environment.
