China Economy: Exports dips more than 20% in February
March 8, 2019 | Friday
On Friday, China reports its worse than estimated trade performance data for February. Custom data revealed during Beijing's trade negotiations with the United States.
Meanwhile, dominating dollar exports decline at 20.7 percent during the month of February compared with its last year performance. That missed the economist's estimation of just 4.8 percent decline. All that according to Reuters poll. On the positive side, its January exports incline at about 9.1 percent compared with last year's performance for the same date.
Elsewhere, China's February trade balance is at $4.12 billion. That was notably weaker than expected. To clarify, Reuters poll by the economist expects a $26.38 billion overall trade balance to come in. That expectation comes upon $39.16 billion trade balance of China in January.
A couple of Headwinds
Even though there's an existing 20.7 percent decline, Chinese exports for the month of February is a "big number." And that the market is to be "clearly disappointed." Sarah Lien, director, and client portfolio manager at Eastspring Investments say the negative numbers shouldn't be shocking as investors are expecting a slowdown globally and within China.
According to Lien, “There are a lot of headwinds; there’s a lot of moving parts in the market.”
The analysts are providing signs and warnings of an upcoming slowdown in Chinese exports. Even so, overall economic data outside the country are robust since last year. Two of the largest economy worldwide continues to resolve the trade dispute from each other. Furthermore, exports held up that much in 2018 as numbers of exporters are rushing to ship goods out ahead tariffs hike.
According to credible sources, Washington and Beijing are nearing its finish line on trade talks. That of which might end later this month.