China’s export growth surpassed market expectations in April, providing signs that it can weather geopolitical uncertainties to recover overseas orders and become a solid driver for its annual economic growth target.
Imports, meanwhile, rose by 8.4 per cent from a year earlier, compared to a 1.9 per cent fall in March.
Elsewhere, the April trade surplus stood at US$72.4 billion, compared with US$58.6 billion in March.
The country’s economy is being supported by trade due to the rise of overseas economies, especially the US
“China’s exports still show resilience after excluding base factors,” said Larry Hu, chief China economist at Macquarie Capital.
“The country’s economy is being supported by trade due to the rise of overseas economies, especially the US.”
The favourable export performance is expected to persist for at least the next six months, he added.
China’s exports tumbled last year as overseas demand slumped, and it saw its first overall growth decline in seven years, as shipments fell by 4.6 per cent.
International bodies, however, expect a more promising trade outlook both for China and the world this year.
The Organisation for Economic Cooperation and Development said last week that the growth of global trade in goods and services could expand to 2.3 per cent this year and 3.3 per cent in 2025 from last year’s 1 per cent growth.
“[Chinese] exports will pick up again as global demand recovers, and an increasing number of Chinese goods become competitive in international markets,” it said.
The International Monetary Fund estimated last month that growth in global trade volumes would grow at a rate of 3 per cent in 2024 and 3.3 per cent in 2025.
More to follow …
