Photo: flickr / www.guigo.eu
The big economic news over the weekend: China has posted a massive trade deficit for February.Via Nomura’s Zhiwei Zhang and Wendy Chen, here are some key numbers:
- February’s trade deficit was $31.5 billion. That’s far bigger than the previous record $7.9 billion.
- The cause was very weak exports, which fell 23.6% month-over-month. The Lunar New obviously had a lot to do with that.
- For the combined January-February period — which attempts to blend out the impact of the Lunar New Year crossing two weeks and coming at different times each year — export growth of 6.8% since the year 2000 (excluding 2009, of course).
- On the bright side, import growth of 39.6% year over year was far better than the decline of 15.3% in January… this may be a harbinger of a new pickup in exports.
In light of the Chinese trade deficit, the Aussie trade deficit, and the Japanese trade deficit, you might be asking as some are: Who has the trade surplus? The answer, we’re guessing, is: The oil states.