Decline in Chinese foreign trade continued in January

BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/07

Measured in US dollars, the value of January goods exports fell 11 % y-o-y, while the value of good imports was down by 19 %. The contraction in exports was broad-based across trade partners and commodities. The contraction in the value of imports accelerated on further declines in world commodity prices, even if the volumes of many commodity imports increased. The goods trade surplus boomed in January to a record $63 billion.

The foreign trade numbers reflect weak demand in China and its key exports markets as well as exchange-rate shifts. Looking at the mirror trade data, the value of US’s and Eurozone’s exports to China fell 5–6 % last year measured in dollars and euros, respectively. Moreover, due to China’s capital controls firms disguise capital movements as foreign trade transactions, which complicates interpretation of Chinese foreign trade figures.

Trends in Chinese foreign trade
201607c2.png
Source: Bloomberg.

Show weekly Review 2016/06 Show weekly Review 2016/08