China's Exports Rebound, Imports Growth Slows In March

China's exports rebounded at a faster than expected pace, while growth in imports slowed in March, data from the General Administration of Customs showed Thursday.

In dollar terms, exports grew 16.4 percent year-on-year in March, reversing February's 1.3 percent decline. Shipments were expected to rise 3.4 percent.

At the same time, imports advanced 20.3 percent after expanding 38.1 percent in February. Economists had forecast a 15.5 percent increase.

As a result, the trade surplus totaled $23.9 billion in March, smaller the expected surplus of $12.5 billion.

Exports grew 22.3 percent and imports climbed 26.3 percent in yuan terms in March.

In the first quarter, exports increased 14.8 percent and imports surged 31.1 percent.

The upshot is that external demand appears to have strengthened further at the end of the first quarter, a trend that seems to be confirmed by the robust export growth also seen elsewhere in the region, Julian Evans-Pritchard, a China economist at Capital Economics, said.

On the other hand, there are signs that the jump in imports on the back of China's recent economic recovery may now be starting to lose steam, the economist noted.

Admittedly, a drop back in commodity price inflation explains some of the decline in import growth but import volume growth appears to have eased as well, suggesting that the tighter policy stance has begun to weigh on domestic demand, the economist said.

The World Trade Organization on Wednesday said the global trade is set to expand 2.4 percent this year, but only if the global economy recovers as expected and governments pursue the right policy mix.

However, the WTO said the lack of clarity about government action on fiscal and trade policies raises the risk that trade activity will be stifled.