China posts first trade deficit in two years as imports jump nearly 40%

The dollar value of China’s exports contracted unexpectedly in February as imports spiked, resulting in the country’s first trade deficit since early 2014.

Exports dropped 1.3 per cent year on year in dollar terms last month, according to data from the General Administration of Customs. That was far below a median estimate predicting a rise of 12.3 per cent from economists surveyed by Reuters and marked a substantial drop from January’s growth in outbound shipments of 27.9 per cent.

Imports ballooned 38.1 per cent year-on-year in dollar terms last month, more than doubling from January’s rise of 16.7 per cent and well above a median forecast of 20 per cent growth.