Hot Money May Have Boosted Export Data

The mainland trade data in the first month of 2014 painted a strong yet controversial picture.

Both export and import growth beat economists’ expectations, underpinned by strong demand from the US and Europe, likely boding well for the mainland’s economic growth.

But the numbers from the Customs Bureau in Beijing yesterday renewed concerns abut large speculative inflows through inflated trade deals, possibly putting upward pressure on the yuan and complicating interpretation of the real trade situation.

Export growth accelerated to 10.6 per cent in January year on year from a 4.3 per cent year-on-year rise in December, while imports gained 10 per cent, also faster than the 8.3 per cent growth in the previous month. The trade surplus expanded to US$31.86 billion from a surplus of US$29 billion a year earlier.

~ SCMP, February 13, 2014 ~

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