Chinese Trade Balance Surplus Smaller Than Expected In December
(For December 2010)
China trade balance was reported at USD 13.1 billion vs. USD 22.9 billion in November and USD 20.8 billion consensus. Export and import growth were running at 17.9 and 25.6 percent vs. 34.9% and 37.7% in November.
Total accumulated surplus for 2010 was USD 185.6 billion vs. USD 198.2 in full year 2009.
Sharp decline in trade balance surplus and both export and import growth confirm what I already anticipated on freight rates. What is even worse there’s no recovery in freight rates in January (jet).
Chart 1. China Trade Balance; Export & Import Growth
