Chinese exports have increased in December, showing the strength of the world's second-largest economy. The outlook remains positive and the Chinese yuan should therefore perform well, economists at TD Securities brief.
“China's Dec exports increased by 18.1% YoY while imports increased by 6.5% YoY. The trade balance jumped to a record $78.17 B and $535 B for the full year, a jump of 57% from 2019.”
“China's exports to the US, Japan, South Korea, ASEAN, EU and Australia increased by 34.5%, 8.2%, 16.4%, 18.4%, 4.3% and 26.9% YoY, respectively. Imports from the US, Japan, South Korea, ASEAN, and EU increased 47.7%, 12.3%, 6.9%, 21.7%, and 15.5% YoY. In contrast imports from Australia fell 8.9% YoY.”
“After a surprisingly strong exports performance in 2020 (+3.6%) even in the face of US tariffs, the outlook remains positive. Many countries are struggling with supply chain constraints and while China will also face higher freight costs and increasing price pressures, it will likely continue to benefit from exports of stay at home goods and medical equipment in Q1 21, given renewed lockdowns in the US and Europe. This bodes well for CNY.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.