China’s exports for the January-February period fell, pointing to continued weakness in foreign demand and backing government concerns that a global slowdown will hamper the country’s recovery from pandemic-era damage, reports Reuters. Imports dropped, too, government data showed on Tuesday, also reflecting weak foreign demand, since the country brings in parts and materials from abroad for many of its exports.
“Given the high inflation in the US and Europe, demand from there should keep weakening, which also dampens the processing demand in China,” said Iris Pang, chief economist for Greater China at ING.
Exports in January and February were 6.8% lower than a year before, after a 9.9% annual fall seen in December. The result was, however, better than the average expectation in a Reuters poll for a fall of 9.4%. Imports were 10.2% weaker, a worse result than in December, when they were 7.5% lower than a year earlier. They greatly missed the poll estimate for a 5.5% drop.