Exports Increased by 50 percent for the month of February
Chinese exports have jumped 48 percent for the month of February compared to a year earlier. The jump is considered as the strongest in almost five years which beat the market expectations, while imports is slowly slipping down 20 percent. These produce a record trade slump of more than US$60 billion for the month.
Compared with market expectations in a recent Reuters poll an increase of 14 percent in exports followed a 3.3 drop in January and a 10 percent fall in imports along with a trade surplus of US$ 10 billion. Analysts looked at the combined trade date for the two months hoping to smooth out any distortions that was caused by the long Lunar New Year Holiday that fell in mid February.
While customs office stated that local exporters are usually making concentrated shipments ahead of the New Year, which in turn might have distorted export figures for the first quarter. In the first two months exports increased by 15 percent compared to a year ago, while import fell 20 percent. Chinese exports rose annually by 6.1 percent for the whole 2014 and imports only went up 0.4 percent.
Import was weaker that exports, thus highlighting the need to push domestic demand even with the fear of deflation as short terms investors are leaving the country, an indication showed by a sustained capital outflow in the recent months.