Chinese exports, imports beat forecasts in November
Chinese trade with the rest of the world picked up more quickly than expected in November, reflecting improved prospects for the global economy in the final stretch of the year, according to economists.
The country´s trade surplus with the rest of the world fell from $49bn in October to $45bn for November.
Exports edged lower by 0.1% year-on-year following a 7.5% drop in the month before, while imports increased at a 6.7% clip, ahead of the 5.0% fall expected by economists.
Julian Evans-Pritchard, China economist at Capital Economics, pointed to improved exports to the US, European Union and emerging markets to back up his argument that the world economy was 'back on track' for growth.
Nonetheless, the outlook for lower trend growth in many geographies meant prospects for Chinese trade were "challenging", Evans-Pritchard said.
"While global demand has recovered somewhat recently, lower trend growth in many developed and emerging economies means that further upside is probably limited. And while we think that Donald Trump will mostly likely stop short of enacting damaging protectionist measures, his election has nonetheless set back global efforts to reduce trade barriers," he said.
HSBC's Jing Li was of a similar view, telling clients: "In the coming months, low base effect, private investment stabilisation and supply side adjustments will continue to support the rebound in inflation. That said, given the uncertainty in external demand and property market, we believe it is still too early to worry about ‘over-heating’. Policy support is still warranted to support demand and sustain reflation."