China’s foreign trade started the new year with significant declines. As the customs administration in Beijing announced today, the exports of the second largest economy fell by 6.8 percent in US dollars in January and February compared to the previous year. Imports fell by 10.2 percent.
Chinese foreign trade had already cooled down last year due to the strict corona measures in the country and weaker global demand. Beijing made a U-turn in early December and lifted most of the pandemic measures. However, a violent corona wave then paralyzed the economy for weeks.
After overcoming this, economists now expect the second largest economy to recover. While the economy grew by only three percent in 2022, the government at the People’s Congress currently meeting in Beijing has set a growth target of around five percent for this year. The International Monetary Fund (IMF) forecasts growth of 5.2 percent. However, continued weak foreign demand is likely to slow down China’s exports.
