China imports lower than a year ago during Covid period
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The news: China's trade balance widened from USD68.4 billion ($104.7 billion) to USD56.5 billion in November, but a year-on-year drop in the value of imports has fuelled fears about demand in the world's second-biggest economy.
The numbers: Imports fell 0.6% on a monthly basis after posting a gain in October, significantly undershooting Bloomberg consensus forecasts of a 3.9% gain. On an annual basis imports fell 0.6% compared to the same time last year, when China was still in the throes of major COVID lockdowns. China's exports in dollar terms were 0.5% higher than a year ago.
The context: The figures have undermined hopes of domestic demand driving a recovery in China's slowing economy in the near term.
What they said: "Domestic demand is not really improving, even as we compared it to a low base last year,” United Overseas Bank economist Woei Chen Ho told Bloomberg. "There is also no discernible improvement trend in exports despite a slightly better than expected export growth in Nov. Taken together, it suggests a weak recovery trend in China."
