- Li Miaoxian, economist at Bocom International Holdings Co
China's trade surplus narrowed in December for the first time in three months, but came in better than economists' expectations on the back of stronger exports. China's trade surplus narrowed to $49.61 billion in December from $54.47bn in November, official data showed, whereas analysts had expected a $49 billion surplus. China's exports soared 9.7% in December from the same month a year ago, compared with November's reading of 4.7%. Imports dropped 2.4% from the previous year following a 6.7% decline in November, less than economists' median forecast for a 7% drop. For the full year 2014, China reported a trade surplus of $382.46 billion, compared with a $259.75 billion surplus in 2013. Exports surged 6.1% in 2014, down from a jump of 7.9% in 2013. Imports climbed 0.4%, compared with a 7.3% growth in the preceding year.
Economists expect that plummeting global oil prices are likely to benefit China's economy and its trade balance, with the world's-second largest economy also being the world's-largest oil importer. China imported 30.37 million metric tons of crude oil in December. Imports of oil rose 13.4% up from 26.78 million tons of crude shipped during the corresponding month last year, and up around 19.5% from 25.41 million tons in October. The International Monetary Fund predicts that cheaper oil will boost China's GDP by 0.4-0.7% this year, and 0.5-0.9% in 2016.
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