Exports out of China registered a growth during the month of December as external demand improved despite the coronavirus pandemic around the world, despite the strengthening in the Chinese yuan which raised the cost for goods manufactured in the country. According to customs data released earlier today, China’s exports picked up by 18.1% YoY in December, strengthening expectations of economic recovery in the country.

While the pace of growth has slowed down since November when exports grew by 21.1% YoY, the reading came in better than economists’ forecast which was for a 15% increase instead. Meanwhile, imports into China rose by 6.5% YoY in December, better than the 4.5% increase seen in November and a 5% increase forecast by economists.

China’s overall trade surplus also rose to $78.17 billion for the month of December, the highest reading seen since at least 2007. The figure came in higher than November’s surplus of $75.40 billion and economists’ expectations for a drop to $72.35 billion.

Despite the global coronavirus pandemic which resulted in lockdowns across China as well as most parts of the world, exports grew by 3.6% through 2020. However, imports into China declined by 1.1% during 2020, on the back of cautious spending by domestic consumers.