China records largest trade deficit since 1990

Beijing, Mar 11(ANI): China has recorded its largest trade deficit since 1990, and economists believe seasonal factors might be the reason behind this one-off case.

China's imports rushed forward by 40 percent, but exports grew at half the rate of imports.

This has caused a trade deficit worth 31.5 billion dollars in February, the largest since 1990.

Experts have ascribed the trade deficit to seasonal factors in February, and termed it as an individual case.

Economists have also forecasted that imports will moderate in the months ahead, as China's economic growth slows down.

They also said this depressing position will probably lead to a 'slower pace of gains in the Chinese currency and the easing of government policy'.

According to the General Administration of Customs, China's imports rose 39.6 percent from a year earlier, after a 15.3 percent slouch in January, and exports grew 18.4 percent year-on-year, with drop of 0.5 percent

In his government work report on Monday, Chinese Premier Wen Jiabao reduced the economic estimate for this year to 7.5 percent, claiming China's priorities this year are to steady the economic growth and expand it's domestic consumption.iabao also said China's foreign trade this year is likely to grow by 10 percent.

"Outlook is not positive," The China Daily quoted Wang Tao, an economist with UBS AG, as saying. (ANI)