Foreign trade up, as Year of the Snake boosts economy
Beijing (AsiaNews/Agencies) - In anticipation of Chinese New Year celebrations, China's foreign trade surged 26.7 per cent year on year to ¥2.17 trillion (US$ 345.59 billion) in January, this according to data from the General Administration of Customs (GAC). The foreign trade surplus also widened by 7.7 per cent to ¥183.21 billion, data showed.
China's exports rose 25 per cent from one year earlier to ¥1.18 trillion in January, and imports increased 28.8 per cent to ¥990 billion.
After considering seasonal factors (last year, January had five fewer working days because of Chinese New Year), China's foreign trade volume was up by 8.1 per cent year on year.
Friday's data showed that China's foreign trade with the European Union rose 10.5 per cent year on year last month to stand at ¥47.14 billion. Trade with the United States increased 23.4 per cent to ¥43.72 billion.
China's trade surplus reached US$ 29.2 billion, higher than market expectation of US$ 22 billion.
Consumer prices rose 2.0 per cent in January from a year earlier, down from a seven-month high of 2.5 per cent in December.
"I think the Chinese New Year effect only explains part of the story," said Zhang Zhiwei, chief China economist at Nomura in Hong Kong. "After controlling for the Chinese New Year, the numbers are still very strong and show the economic recovery is on track."
The coming Lunar New Year (9-10 February) will usher in the Year of the Black Water Snake.
Traditionally, the event is celebrated in much of Asia, above all in China, for at least a fortnight.
At this time of the year, people go on a spending splurge and settle their debts. A great deal of food and new furniture are bought. People also go back to their ancestral home for the holiday.
"It seems to me that imports were particularly strong and that reflects two things: one is that the domestic demand, in particular investment demand, is very strong. The second thing is that it seems that companies are restocking ahead of the Chinese New Year and ahead of the peak season in March and April," said Tao Wang, China economist at UBS in Hong Kong.
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