China’s exports top forecasts as global demand returns

China’s export and import growth in the January-February period beat forecasts, suggesting global trade is turning a corner in an encouraging signal for policymakers as they try to shore up a stuttering economic recovery.

China’s improved export data joins those of South Korea Germany, and Taiwan, who all saw their shipments top expectations over the first two months of the year, with the Asian economies benefiting from a surge in demand for semiconductors.

Exports from the world’s second-biggest economy in the two months were 7.1 per cent higher than a year before, customs data showed on Thursday, beating a Reuters a poll that expected an increase of 1.9 per cent. Imports were up 3.5 per cent, compared with a poll forecast for growth of 1.5 per cent.

“The better-than-forecast data echoes a recovery in global trade driven by the electronics sector, but also benefits from a low base effect, as export growth in January-February 2023 was -6.8 per cent,” said Xu Tianchen, senior economist at the Economist Intelligence Unit.

The customs agency publishes combined January and February trade data to smooth out distortions caused by the shifting timing of the Lunar New Year, which this year fell in February.