China’s exports up 21.8%

China’s exports increased 21.8 % year-on-year in February, while imports fell 15.2%, according to figures released Friday by the General Administration of Customs. Exports in February totaled 875.12 billion yuan (US $139.37 billion), while imports were valued at 778.97 billion yuan ( US $124.12 billion). The customs office also released combined trade figures for the first two months of the year, which showed that China’s total trade increased 14.2% over the same period last year. But Chinese exports crushed expectations again rising 21.8% on the year, against consensus for an 8.1% rise. The trade balance narrowed to US$15.25 billion, but was above expectations for a deficit of US $6.9 billion. Bank of America’s Ting Lu had predicted a 9.5% decline in exports because of the impact of the Chinese New Year. This differs significantly from the consensus view. Economists however consider this data with a pinch of salt because of distortions caused by the long holiday. Instead, the prefer to look at January-February data together.