China’s trade surplus increased in December, as exports dropped at a slower-than-expected pace, raising hopes that the depreciation in yuan is unlikely to continue notably on robust revenue from shipments.
Exports fell 1.4 percent on a yearly basis in December, data published by the General Administration of Customs revealed Wednesday. It was slower than an 8 percent decline expected by economists and a 6.8 percent decrease posted in November.
At the same time, imports slid 7.6 percent, also slower than the expected decrease of 11 percent.
The trade surplus rose to around $60 billion taking the full year surplus to $594.5 billion. The December figure was well above a $51.3 billion surplus forecast by economists.
Despite the turmoil in the Chinese financial markets, there hasn’t been a major deterioration in its economy in recent months, Daniel Martin, a Senior Asia economist at Capital Economics, said.
Another large trade surplus last month provides a cushion for the People’s Bank in the face of soaring capital outflows, the economist noted.
In yuan denomination, exports advanced 2.3 percent, reversing a 3.7 percent drop in November. Imports slid at a slower pace of 4 percent after falling 5.6 percent a month ago.
The trade surplus increased to CNY 382.05 billion from CNY 343.1 billion in November.
Highly volatile Chinese stock market and the deterioration in yuan dampened investor confidence across the global markets at the start of the year.
The National Bureau of Statistics is set to release GDP data on January 19. The economy is forecast to grow 6.9 percent in the fourth quarter as weak demand, industry overcapacity and investment slowdown weigh on activity.
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