According to Reuters, China’s import data contracted sharply in April, while export growth slowed and domestic demand continued to weaken. China’s economy grew faster than expected in the first quarter thanks to a surge in services consumption, but factory output has lagged and the latest trade figures suggest the country has some way to go before it recovers from the pandemic. China’s inbound cargo volume fell 7.9 per cent in April from a year earlier, extending a 1.4 per cent decline a month earlier, while exports rose 8.5 per cent, much slower than March’s 14.8 per cent surge, according to customs data.
Economists polled by Reuters had forecast no increase in imports and an 8.0 percent rise in exports. Xu Tianchen, an economist at the Economist Intelligence Unit, said: “At the beginning of this year, it was thought that China’s imports after the reopening would easily exceed 2022 levels, but this is not the case.” The sharp deterioration in trade flows last month may raise concerns about the state of external demand and risks to the domestic economy. A China economist at Capital Economics said in a statement that exports may fall further before bottoming out by the end of the year as the outlook for external demand darkens.
Post time: May-15-2023