China’s Improving Economic Outlook

The risks of a hard landing in China have subsided as the strong economic data releases of January continue to support the country’s improving economic outlook. Exports, measured inchina US dollars jumped 16.7% year on year, from 3.1% in December and beat market calls for 10%, meanwhile imports remained robust at 7.9%, beating the market consensus once again. Inflation figures also surprised on the upside; PPI surged 6.9% to the highest level since March 2011 while CPI rose 2.5%, from 2.1% in December. ‘Seasonal factors’ could have contributed to the encouraging trade data; boosted by the timing of the week-long Lunar New Year beginning in January.

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