China's March exports decline 7.5% YoY, imports shrink 1.9%; miss estimates by wide margin
China's March exports fell 7.5 percent year-on-year (YoY), while imports unexpectedly shrank 1.9 percent, both undershooting market forecasts by large margins, customs data showed on April 12, according to a Reuters report. The latest figures highlight the tough task for policymakers as they try to bolster a shaky economic recovery.
Exports from the world's second-largest economy shrank 7.5 percent in dollar terms in March from a year earlier, while imports fell 1.9 percent leaving a trade surplus of $58.55 billion for the month. Economists had forecast that exports would fall 1.9 percent while imports would rise 1 percent.
A Reuters poll of economists had forecast exports would decline 2.3 percent due to a high year-ago base comparison, after outbound shipments rose 7.1 percent in January-February, and imports to grow 1.4 percent, compared with 3.5 percent growth in the first two months. China posted a trade surplus of $58.55 billion in March compared with a $70.2 billion surplus expected in the poll.
The nation's exporters endured a tough period for much of last year due to soft overseas demand and tight global monetary policy. With the Federal Reserve and other developed nations showing no urgency to cut interest rates, Chinese manufacturers may be faced with a further period of challenges as they try to shore up goods sales overseas.
Analysts warn Western concerns over China's overcapacity in some industries may bring more trade barriers for the world's manufacturing hub. Imports for March also declined 1.9 percent from the 3.5 percent growth in the first two months, missing an expected 1.4 percent rise.
The imports figure underlined the sluggish domestic demand conditions, which were also highlighted by Thursday's data showing consumer inflation had cooled more than expected last month.
China's consumer inflation cooled more than expected in March, while producer price deflation persisted, maintaining pressure on policymakers to launch more stimulus as demand remains weak.
Worrying deflationary pressures in the world's second-largest economy appear to be slowly easing, though a protracted property crisis is still weighing heavily on consumer and business confidence.
Rating agency Fitch had cut its outlook on China's sovereign credit rating to 'negative' on April 10, citing risks to public finances as the economy faces increasing uncertainty in its shift to new growth models. – businesstoday.in –