Trade Deficit In Services To Offset Trade Surplus In Goods

The impact of the expanded trade surplus on the economy should not be overestimated, as the widening trade services deficit could offset it, noted Guan Tao, a former official at the State Administration of Foreign Exchange in an article published by Yicai. External demand as an economic driver corresponds to the balance of goods and services released by SAFE, not the trade balance released by Customs, Guan noted. In January, the 57% y/y growth in service deficit, mainly due to rebounding outbound tourism, offset the 18.3% growth in goods surplus, leading to 1.3% growth in the surplus of goods and services, Guan said.