China's Exports in January-February Up 7.1% Year-on-Year... Exceeding Expectations (Comprehensive)

China recorded an export growth rate in January-February this year that significantly exceeded expectations. With an annual economic growth target of around 5.0% announced, this is seen as an encouraging sign of demand recovery.

According to the General Administration of Customs of China on the 7th, China's export value in January-February increased by 7.1% year-on-year to $528 billion (approximately 702 trillion KRW). This figure greatly surpassed both the previous month's rate (2.3%) and the forecast (1.9%). The growth rate is the highest since April last year (8.5%).

[Image source=AP Yonhap News]

During the same period, imports rose by 3.5% to $402.8 billion, also exceeding the forecast (1.5%) and the previous month's rate (0.2%). China's trade surplus for January-February recorded $125.16 billion, increasing by 20.5% year-on-year, marking an all-time high.

Carlos Casanova, Chief Economist at Union Bancaire Priv?e (UBP), told Bloomberg News, "Global demand is increasing due to strengthened manufacturing activity in the United States," adding, "While the rise in demand may not offset domestic pressures from the housing sector slowdown, it will not be a hindrance to China in 2024."

On the 5th, the Chinese government set this year's economic growth target at "around 5.0%," the same as last year. However, with the base effect fading and ongoing challenges such as real estate and local government debt issues unresolved, the target was considered difficult to achieve. Subsequently, Pan Gongsheng, Governor of the People's Bank of China, suggested that there is still room for a reserve requirement ratio (RRR) cut, indicating the possibility of further liquidity easing.

This content was produced with the assistance of AI translation services.