Surprise jump as exports end year on high China

China's export growth rebounded surprisingly sharply to a seven-month high in December, a strong finish to the year after seven…

China's export growth rebounded surprisingly sharply to a seven-month high in December, a strong finish to the year after seven straight quarters of slowdown. However, subdued global demand means that the spike may not herald an enduring recovery.

Uncertain trade prospects contrast with data that showed resilient local loan demand, further evidence that the world's second-largest economy rebounded towards 8 per cent annual growth in the last quarter of 2012 on firming domestic demand.

That modest revival may reassure China's new leaders after a once-a-decade power transition and follows a raft of pro-growth policy steps designed to support the economy - poised to post its slowest full-year growth figure since 1999.

Trade data released yesterday showed the value of China's exports grew 14.1 per cent last month compared with a year earlier.

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Economists said the pick- up in exports growth from November's 2.9 per cent rise was likely accentuated by lower comparison figures a year ago and exporters clearing year-end orders, which do not suggest a sustainable turnaround.

The value of imports grew 6 per cent on the year in December. - (Reuters)