China’s exports expected to slow in Jan-Feb

A Reuters poll suggests that China’s export growth likely slowed in the January-February period, indicating that manufacturers are still struggling to find overseas buyers and need further policy support at home, Reuters reported on Wednesday.

The data, to be released on Thursday, is expected to show a 1.9 per cent year-on-year increase in exports, down from 2.3 per cent in December.

Premier Li Keqiang has set an ambitious 2024 economic growth target of around five per cent and pledged to transform the country’s development model, which heavily relies on exporting finished goods.

China’s imports are expected to have increased by 1.5 per cent in the same period, the statement added.

However, South Korean exports to China, a leading indicator of China’s imports, fell 2.4 per cent in February, despite better-than-expected outbound shipments from South Korea.

The poll also indicates that China’s trade surplus is likely to increase to $103.7 billion from $75.3 billion in December.

( 1 United States dollar = 7.20 Chinese yuan)