Global Economic Analysis and News of Note: Chinese Exports Drop Significantly
- The Chinese government announced last week that total exports from the country fell 25.4 percent to $126.1 billion from February 2015 to February 2016 after declining 11.2 percent year-over-year in January. Imports declined 13.8 percent to $93.5 billion. Despite the negative report, the nation still ran a $32.6 global trade surplus in February. China’s trade surplus with the United States narrowed by about 25 percent, however, as U.S. purchases of Chinese goods fell 15 percent.
- Behind strong domestic demand, industrial production in Germany rose 3.3 percent from December 2015 to January 2016, the most significant increase since September 2009. Analysts had predicted an increase of just 0.5 percent. Manufacturing production rose 3.2 percent while overall industrial production was up 2.2 percent year-over-year. In a press release, the German government said, “After a weak spell in [the] second half 2015, the manufacturing industry had a very good start in the new year … Overall, a moderate recovery in industrial activity is expected in the first quarter.”