China exports declined more-than-expected at the end of the year on subdued global demand, while imports growth exceeded expectations, official data revealed Friday.
Exports fell 6.1 percent annually in December, data from the General Administration of Customs revealed, which was much faster than the 3.8 percent decline economists had expected.
On the other hand, imports climbed 3.1 percent, slightly faster than the forecast of 3 percent.
As a result, the trade surplus dropped unexpectedly to $40.8 billion in December from around $44.6 billion in November. The surplus was forecast to increase to $47.5 billion.
In yuan terms, exports climbed 0.6 percent and imports advanced 10.8 percent.
For the full year of 2016, exports slid 2 percent, while imports climbed 0.6 percent. Consequently, the trade surplus narrowed to $486 billion.
The drop back in trade growth is still concerning given that the current environment of rising prices and relatively buoyant global manufacturing growth ought to have been supportive of Chinese trade values, Julian Evans-Pritchard, an economist at Capital Economics, said.
The economist said further upside to economic activity, both in China and abroad, is probably now limited given declines in trend growth.
Instead, the risks to trade lie to the downside – the likelihood of a damaging trade spat between China and the US has risen in recent weeks following Trump's appointment of hardliners to lead US trade policy, the economist added.
by RTT Staff Writer
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