The nation's trade surplus fell sharper than expected in January after imports surges, according to figures released Monday by the General Administration of Customs.
Exports rose by 37.7 percent to $150.73 billion in January while imports grew up 51 percent to $144.28 billion, resulting in a trade surplus of $6.45 billion, a decline of 53.5 percent over last year, according to customs.
This compares with a December surplus of $13.1 billion.
January saw the smallest surplus in nine months.
Both exports and imports were stronger than expected in January, but imports surged mainly due to a jump in iron ore imports, while exports moderated from December to January, leading to shrinking surplus, said Yan Jin, an economist with Standard Chartered Bank (China).
Hikes in imported commodity prices also contributed to the import surge, Yan added.
The strong trade data bodes well for the economic climate, Goldman Sachs econo-mists Song Yu and Qiao Hong said.
"The strong export growth momentum is supported by improvements in the economic (status) of China's major trading partners, and strong import growth momentum is supported by strong domestic demand," they wrote in a note.
The strong economic fundamentals may also make it easier for the government to further raise interest rates as a way of reining in rising inflation, Yan said.
Inflation is likely to average around 5.5 percent for the whole year, and the central bank will raise interest rates by a quarter-point at least twice this year, she forecast.
January inflation data will be released by the National Bureau of Statistics today.
But given the fact that seasonality should be factored in in January, the strong trade data is not likely to continue.
"Surely both exports and imports were greatly distorted to the upside due to the special timing of the ChineseNew Year holiday," Lu Ting, an economist with Bank of America-Merrill Lynch, said in a research note Monday.
Both export and import growth will slump in February, Lu believes.
Uncertainties that remain in the global economy are likely to impact this year's trade performance, economists also said.
Emerging economies are facing rising inflationary pressures, which may cause a slowdown in their economic growth, while a general recovery in developed economies is not likely to happen in the near future, Lu Zhiming, an economist with the Bank of Communications, pointed out in a research note.
"We expect annual export and import growth to be at 19.0 percent and 23.2 percent respectively in 2011, down from 31.3 percent and 38.7 percent in 2010," estimated Lu with Bank of America-Merrill Lynch.
Exports rose by 37.7 percent to $150.73 billion in January while imports grew up 51 percent to $144.28 billion, resulting in a trade surplus of $6.45 billion, a decline of 53.5 percent over last year, according to customs.
This compares with a December surplus of $13.1 billion.
January saw the smallest surplus in nine months.
Both exports and imports were stronger than expected in January, but imports surged mainly due to a jump in iron ore imports, while exports moderated from December to January, leading to shrinking surplus, said Yan Jin, an economist with Standard Chartered Bank (China).
Hikes in imported commodity prices also contributed to the import surge, Yan added.
The strong trade data bodes well for the economic climate, Goldman Sachs econo-mists Song Yu and Qiao Hong said.
"The strong export growth momentum is supported by improvements in the economic (status) of China's major trading partners, and strong import growth momentum is supported by strong domestic demand," they wrote in a note.
The strong economic fundamentals may also make it easier for the government to further raise interest rates as a way of reining in rising inflation, Yan said.
Inflation is likely to average around 5.5 percent for the whole year, and the central bank will raise interest rates by a quarter-point at least twice this year, she forecast.
January inflation data will be released by the National Bureau of Statistics today.
But given the fact that seasonality should be factored in in January, the strong trade data is not likely to continue.
"Surely both exports and imports were greatly distorted to the upside due to the special timing of the ChineseNew Year holiday," Lu Ting, an economist with Bank of America-Merrill Lynch, said in a research note Monday.
Both export and import growth will slump in February, Lu believes.
Uncertainties that remain in the global economy are likely to impact this year's trade performance, economists also said.
Emerging economies are facing rising inflationary pressures, which may cause a slowdown in their economic growth, while a general recovery in developed economies is not likely to happen in the near future, Lu Zhiming, an economist with the Bank of Communications, pointed out in a research note.
"We expect annual export and import growth to be at 19.0 percent and 23.2 percent respectively in 2011, down from 31.3 percent and 38.7 percent in 2010," estimated Lu with Bank of America-Merrill Lynch.
