China reports unexpected trade deficit of $22.98 bn in February
BEIJING — China recorded an unexpected trade deficit of $22.98 billion in February, official figures showed yesterday, with authorities blaming the country’s holiday season for the weak performance. The figure compared with a surplus of $14.8 billion in the same month last year, and a median forecast of an $11.9 billion surplus in a poll of 13 economists by Dow Jones Newswires. Exports fell 18.1 per cent to $114.10 billion, while imports were up 10.1 per cent to $137.08 billion during the month, which included most of the Lunar New Year holiday, the General Administration of Customs said. “The Spring Festival factor caused sharp fluctuations in the monthly growth rate as well as the monthly deficit,” Customs said in a statement accompanying the data.
Chinese traders followed their “business habit” of bringing forward exports ahead of the holiday, and focusing on imports immediately afterwards, it added. Analysts played down the deficit — China’s first in 11 months — saying improving foreign demand bodes well for the country’s trade this year. “Generally we are rather optimistic about this year’s trade outlook,” Zhou Hao, a Shanghai-based economist with ANZ, said. The surprise deficit was probably a result of government efforts to curb speculative capital inflows, he said. Early last year unusual swings in trade figures were seen as driven by over-invoicing by exporters and importers in a bid to disguise capital flows, a practice the government is believed to have cracked down on later. “Judging from the overall foreign demand and demand at the enterprises’ end, trade growth rate will accelerate in the coming months after offsetting the impact of the holiday and fake trade reporting in January and February,” Zhou said. — AFP
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