BEIJING (Reuters) -China's exports contracted sharply in March while imports unexpectedly shrank, undershooting forecasts by big margins, highlighting the stiff task facing policymakers as they try to bolster a shaky economic recovery. China has struggled to mount a sustainable post-COVID bounce, burdened by a protracted property crisis, mounting local government debts and weak private-sector spending. Exports from China slumped 7.5% year-on-year last month by value, customs data showed on Friday, the biggest fall since August last year and compared with a 2.3% decline forecast in a Reuters poll of economists.
Indonesia's economy grew 5.0% in the fourth quarter from a year earlier, supported by resilient domestic consumption, despite exports shrinking and commodity prices falling, a Reuters poll of 23 economists found. Growth in Southeast Asia's largest economy was mostly driven by private consumption which remains strong against a cumulative 250 basis points of interest rate hikes by Bank Indonesia since August 2022. "The current policy rate is not tight enough to hinder economic growth because consumer appetite to withdraw loans remains robust and we saw good performance in terms of consumption, working capital and investment", said Irman Faiz, an economist at Bank Danamon.
The U.S. trade deficit unexpectedly narrowed in November as imports of consumer goods fell to a one-year low amid slowing domestic demand, a trend that, if it persists in December, could result in trade having no impact on economic growth in the fourth quarter. The Federal Reserve's rate hiking cycle has likely ended, with financial markets expecting the U.S. central bank to start lowering borrowing costs as soon as March. "The weakness of both exports and imports in November suggests that weaker growth overseas is now being matched by a softening in domestic demand too," said Andrew Hunter, deputy chief U.S. economist at Capital Economics.