China's exports decline for first time since 2016
For the first time since 2016, China's exports saw a full-year decline, with the country selling $3.38 trillion worth of goods globally in 2023, a 4.6% drop from the previous year. This decline was mainly caused by reduced global demand, particularly from Europe and the United States, impacting a crucial source of growth for China, the world's second-largest economy. The drop in demand is connected to the fact that interest rates were rising during that time in Europe and US.
Imports fall, trade surplus remains
In addition to the decline in exports, China's full-year imports also fell by 5.5%, resulting in a trade surplus of $823 billion for the year. In December 2023, exports in dollar terms grew by 2.3% compared to a year earlier, while imports increased by 0.2%, leaving a surplus of $75 billion. The December data was likely influenced by more favorable comparisons with the previous year when shipments were heavily impacted by the COVID-19 pandemic.
Early signs of global trade rebound
Although China's exports experienced an overall decline, there are early signs of a rebound in global trade. South Korean exports increased by 5.1% in December, and worldwide sales of semiconductors returned to growth in November after over a year of decline. China's exports to key partners such as the US, EU, Japan, and South Korea decreased in December but shipments to Russia surged by over 20% and imports from Australia jumped nearly 25%.
