14 Jan 2015
China: Trade data better than expected in Dec - Nomura
FXStreet (Bali) - China's trade data came better than expected in December, notes Nomura, still expecting further policy easing to support the economy.
Key Quotes
Export growth strongly rebounded to a better-than-expected 9.7% y-o-y in December from 4.7% in November (Consensus and Nomura: 6.0%).
Imports contracted by 2.4% y-o-y in December after a decline of 6.7% in November; this was also better than market expectations (Consensus: -6.2%; Nomura: 1.0%) and resulted in a still-high trade surplus of USD49.6bn.
For full-year 2014, exports grew by 6.1% and imports grew by a modest 0.4%, resulting in a trade surplus of USD382.5bn.
Despite the strong export data in December, we still expect further policy easing to support the economy because domestic demand remains weak.
We maintain our view that GDP growth will stay at 7.3% y-o-y in Q4 2014 before slowing to 7.1% in Q1 2015
Key Quotes
Export growth strongly rebounded to a better-than-expected 9.7% y-o-y in December from 4.7% in November (Consensus and Nomura: 6.0%).
Imports contracted by 2.4% y-o-y in December after a decline of 6.7% in November; this was also better than market expectations (Consensus: -6.2%; Nomura: 1.0%) and resulted in a still-high trade surplus of USD49.6bn.
For full-year 2014, exports grew by 6.1% and imports grew by a modest 0.4%, resulting in a trade surplus of USD382.5bn.
Despite the strong export data in December, we still expect further policy easing to support the economy because domestic demand remains weak.
We maintain our view that GDP growth will stay at 7.3% y-o-y in Q4 2014 before slowing to 7.1% in Q1 2015