Chinese exports expand for the 1st time in nine months

PanARMENIAN.Net - Chinese exports expanded in March for the first time in nine months, mildly buoying an economy that is struggling to regain momentum, the Wall Street Journal reports.

Economists cautioned that the export boost, after months of decreases, in part reflects a seasonal upturn after the Lunar New Year holiday in February and isn’t likely to be sustained given tepid global demand. Exports last month also benefited from a weak year-earlier performance that made comparative results look stronger.

Exports rose 11.5% in March year-over-year in dollar terms, the General Administration of Customs reported Wednesday, April 13. This compared with February’s 25.4% decline and exceeded a median 8.5% increase forecast by 14 economists polled by The Wall Street Journal. Imports in March declined by a less-than-expected 7.6%, compared with February’s 13.8% drop. And China’s trade surplus narrowed last month to $29.86 billion from February’s $32.5 billion.

“Even with this rebound, first-quarter trade is still quite weak,” said Standard Chartered Bank Ltd. economist Shuang Ding. “We cannot be very definite about a turnaround.”

The March trade data comes at a time of global sluggishness. On Tuesday, the International Monetary Fund cut its 2016 global growth outlook to 3.2%, from 3.4%. A day earlier, the World Bank cut its global forecast to 2.5% from 2.9% amid concerns over a U.S. interest rate increase and a broad-based economic slowdown in emerging economies.

Exporters, who once powered the Chinese economy, face growing headwinds as outbound shipments fell 2.8% in 2015 after growing 7.5% on average between 2012 and 2014. A Commerce Ministry survey last month cited currency fluctuations, weak global demand, financing problems and rising costs as major concerns. Salaries for factory workers in coastal provinces now average $600 a month, twice the level in some Southeast Asian nations, the agency said.