Beijing eyes 5pc growth as trade hits 30-month low

Agencies

China's exports and imports shrank at their steepest pace in at least two-and-a-half years in November, as feeble global and domestic demand, Covid-led production disruptions and a property slump at home piled pressure on the world's second-biggest economy.

The data came as senior officials debated an economic growth target for next year of around 5 percent,

Exports contracted 8.7 percent in November from a year earlier, a sharper fall from a 0.3 percent loss in October and marked the worst performance since February 2020, data from the National Bureau of Statistics of China showed on Wednesday. They were well below analysts' expectations for a 3.5 percent decline.

Beijing is moving to ease some of its stringent pandemic-era restrictions, but outbound shipments have been losing steam since August as surging inflation, sweeping interest rate increases across many countries and the Ukraine crisis have pushed the global economy to the brink of recession.

Economists are predicting a further period of declining exports, underlining a sharp retreat in world trade as consumers and businesses slash spending in response to central banks' aggressive moves to tame inflation.

Meanwhile, senior Chinese officials are debating an economic growth target for next year of around 5 percent, according to people familiar with the discussion, as Beijing shifts gears toward bolstering the recovery.

Beijing is adopting a more pro-growth stance now after months of economic turmoil triggered by record Covid outbreaks and a property market crisis -- a downturn underscored Wednesday by the worst monthly trade data in more than two years.

The Communist Party's Politburo, its top decision-making body, said in a statement yesterday it will seek a turnaround in the economy next year and significantly boost market confidence. The comments came hours before the government announced a significant easing of Covid restrictions.

China's economy grew just 3 percent in the first three-quarters of this year, well below the annual target of around 5.5 percent. Full-year growth is widely expected by analysts to be just over 3 percent.

The focus now falls on the upcoming closed-door Central Economic Work Conference, when Chinese leaders are expected to chart the policy course for the economy in 2023.