China’s exports and imports returned to growth in April, suggesting that demand is improving despite an uneven economic recovery, according to customs data released yesterday.
The report showed exports grew 1.5% in April compared to a year earlier, after falling 7.5% in March, the first contraction since November. Imports surged 8.4% in April, beating analysts’ expectations and up from a 1.9% decline in March.
China has introduced various policy support measures in recent months to support growth and boost confidence in the world’s second-largest economy.
China’s trade surplus grew to $72.35 billion, up from $58.55 billion in March.
However, the outlook is not entirely positive given broader global trends, analysts said.
“We think export volumes will retreat over the coming months due to cooling consumer spending in advanced economies and the diminishing tailwind from lower export prices,” Zichun Huang of Capital Economics said in a note.
Export growth was mainly due to a lower base of comparison in the previous year, Huang said. She said that import volumes were likely to bounce back further in the near future due to “fiscal spending supporting import-heavy construction.”
No Comments