China’s December trade growth likely to improve: Poll, Latest Business News - The New Paper

China’s December trade growth likely to improve: Poll

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BEIJING : China is expected to post stronger export and import growth in December, helped by a rebound from a low base, a Reuters poll showed, signalling a modest recovery in demand as Beijing and Washington step closer to ending their trade war.

Exports by China likely rose 3.2 per cent in December from a year earlier, according to a median estimate from the survey of 31 economists, improving from a 1.3 per cent drop in November and marking the first pickup since a 3.3 per cent rise in July.

Imports are forecast to have jumped 9.6 per cent from a year earlier in December, the strongest pace since October 2018, the poll showed.

Goldman Sachs analysts said the turnaround was due mainly to low base and a more visible effect of front-loading of exports last month.

Higher commodity price inflation also helped boost the value of imports, analysts said.

The stronger imports also denoted a pick-up in domestic demand, as suggested by China's latest official factory activity survey, they said.

Overall sentiment improved last month after China and the US reached a phase one trade deal. China's Vice-Premier Liu He will be visiting the US to sign the interim agreement.- REUTERS