Is China witnessing green shoots of recovery?

 December 2012 seems to have been a good month for the Chinese economy. Exports rose 14.1% from a year earlier. This was the fastest in seven months and well above November's 2.9% growth. Imports rose 6% in December from a year earlier after a flattish trend in November. Both these figures were better than what most had estimated. In addition to this, China also witnessed an increase in its trade surplus to US$ 31.6 bn from US$ 19.6 bn in November.

China so far had been witnessing a slowdown in its economy. Given that it has largely been export oriented, recession in both the US and Europe had hampered growth. The December numbers have, however, increased optimism that the economy is on a rebound. And a surge in Chinese GDP growth certainly augurs well for the global economy as well. But it would make more sense to wait for a few more months before taking a call on where the economy is headed. Although the December numbers are quite good, basing predictions on the health of the economy on one month alone does not seem too prudent.