China's exports likely slowed in Jan-Feb period as factories struggle

China's exports growth likely slowed in the January-February period, a Reuters poll showed on Wednesday, suggesting manufacturers are still struggling for overseas buyers and in need of further policy support at home.

Trade data for the January-February period is expected to show exports grew 1.9% year-on-year in U.S. dollar terms, according to the median forecast of 34 economists, down slightly from the 2.3% increase recorded in December. The data will be released on Thursday.
 

The head of the state economic planner said on Wednesday that China's exports for January-February rose by 10%, but did not state whether that was in yuan or dollar terms.
 

 

The customs agency publishes combined January and February trade data to smooth out distortions caused by the shifting timing of the Lunar New Year, which fell in February this year.
 

Chinese Premier Li Qiang on Tuesday announced an ambitious 2024 economic growth target of around 5% and promised to transform the country's development model, which is heavily reliant on exporting finished goods.
 

The world's second-biggest economy has been grappling with sub-par growth over the past year amid a property crisis and as consumers hold off spending, foreign firms divest, manufacturers struggle for buyers and local governments contend with huge debt burdens.
 

Manufacturing activity in China in February shrank for a fifth straight month, the government's purchasing managers' index showed on March 1, while new export orders decreased for an 11th consecutive month.
 

China's imports likely increased 1.5% in Jan-Feb, according to the poll.
 

But South Korean exports to China, a leading indicator of China's imports, fell 2.4% in February even though outbound shipments from Asia's fourth-largest economy performed far better than market forecasts.
 

Chip exports from China's neighbour soared last month, strengthening the view that a cyclical upturn in demand for electronic goods and semiconductors is propping up global growth.
 

The median estimate in the poll indicated that China's trade surplus would increase, with analysts predicting it will come in at $103.7 billion from $75.3 billion in December.