- Standard Chartered Bank
China's exports increased in March for the first time in nine months, mildly boosting an economy that is struggling to regain strength. Economists, however, warned that the export rise, after months of declines, partly reflects a seasonal gain after the Lunar New Year holiday in February and is unlikely to be sustained in light of moribund global demand. Exports soared 11.5% in March year-over-year in Dollar terms, according to the General Administration of Customs. This compared with February's 25.4% plunge and exceeded a median 8.5% increase expectations. At the same time, imports in March dropped by a less-than-expected 7.6%, following February's 13.8% decrease. As a result, China's trade surplus shrank last month to $29.86 billion from February's $32.5 billion. China's March data came one day after the International Monetary Fund downgraded its global outlook. The IMF lowered its 2016 global growth outlook to 3.2%, from 3.4%. A day earlier, the World Bank downgraded its global forecast to 2.5% from 2.9% due to concerns over a US interest rate hike and a broad-based economic slowdown in emerging economies.
Later this week China will release its much-anticipated growth data for the first quarter. The forecast is for a growth of 6.8% for the three months to March.
© Dukascopy Bank SA