China's trade tumbles sharply in Dec, clouds 2023 growth outlook

Exports contracted 9.9 per cent year on year in December, extending a 8.7 per cent drop in November

China’s exports shrank sharply in December as global demand cooled, highlighting risks to the country’s economic recovery this year, but a more modest decline in imports reinforced views that domestic demand will slowly recover in coming months.

While imports are expected to ride a wave of pent-up demand after China dropped its tough Covid-19 measures in December, its exports are seen weakening well into the new year as the global economy teeters on the brink of recession.

“The weak export growth highlights the importance of boosting domestic demand as the key driver for the economy in 2023,” said