China Posts A Record-Shattering Trade Deficit For February


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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.

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