China: Continued strong exports point to healthy global demand

Exports ended 2020 on a positive note, registering strong year-over-year growth in December and for the fourth quarter as a whole in China, according to Oxford Economics. While virus-related demand supported exports throughout second half 2020, demand for other products also picked up in the fourth quarter, especially high tech and other electronic products. Looking ahead, current trends and the positive global economic outlook imply robust export growth in 2021, even though Oxford Exconmics expects COVID-related shipments to slow.

Import growth picked up in December, resulting in faster growth in the fourth quarter compared with the previous quarter. On a sequential basis, import volumes held relatively steady in the fourth quarter from the third quarter. The report said goods imports will expand significantly in 2021, underpinned by strong domestic demand. There may be a shift within domestic demand toward consumption and corporate investment, from infrastructure and real e