China’s Goods and Services Trade Deficit in February Does Not Reflect Overall Situation, Experts Say

Yicai

2017-03-28

(Yicai Global) March 28 -- The international goods and services trade deficit that China witnessed in February does not reflect China’s overall situation, and the trend is likely to reverse in the following months, industry experts say.

Goods trade in China has been characterized by surplus for many years, said Xie Yaxuan, the chief macroeconomic analyst at China Merchants Securities. A single-month deficit early in the year influenced by Spring Festival factors and the stocking of goods at the beginning of a new year is normal, he said.

China had a CNY154 billion (USD22 billion) international goods and services trade deficit last month in accordance with the international payment measurement standard, the State Administration of Foreign Exchange said yesterday. This international goods and services deficit is the first recorded since SAFE began publishing relevant figures in March 2015

February’s income and expenditure of international goods and services trade totaled CNY955 billion and CNY1.1 trillion, respectively. January’s trade surplus amounted to CNY225 billion.

The goods trade income of CNY815 billion and expenditure of CNY848 billion led to an unusually large deficit of CNY33 billion. Services trade, which has maintained a deficit for years, had income of CNY140 billion, expenditure of CNY261 billion and a deficit of CNY121 billion in February.

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