Chinese exports grew sharply in March 2016

Chinese exports grew in March 2016 with its fastest pace in nearly an year, which is giving a modest boost to the economy. However, economists warn that the growth in exports, after a series of declines, partly reflect seasonal movement after Chinese New Year, which was in late January and early February. Therefore, the increase is unlikely to be sustainable given weak global demand. In March, the exports in dollar grew by 11.5% yoy, which the economics expected an increase of 8.5%. In comparison the growth was 24% in February 2016.

The imports in March decreased at a slower than expected pace of 7.6%, as during the previous month amounted to 13.8%. So the Chinese trade surplus shrank from 32.5 billion USD to 29.86 billion USD. Even with this improvement in the first quarter the trade balance still looks weak.

The export denominated in yuan grew by 18.7% yoy in March, while imports declined by only 1.7%. The Chinese trade surplus in yuan amounted to 194 billion CNY.

The companies exporters, which were the engine of the Chinese economy, today are facing headwinds. In 2015, the exports from China declined by 2.8%, once between 2012 and 2014 it grew by an average of 7.5%. The main threats of trading are the currency fluctuations, weak demand, financing problems and rising costs

Imports from Hong Kong grow by 116% yoy in March keeping the sharp trend. In January and February, imports from the special administrative region reported an increase of 9%. This occurs against the backdrop of declining exports, as a whole.

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