Chinese exports surged considerably in April for the first time since the coronavirus pandemic erupted December last year as a result of Governments across countries have started relaxing their lockdown restrictions and re-opening their industrial productions. With this unexpected rise of the export, the world’s second-largest economy has witnessed taking off some pressures after the pandemic hammered the global supply chain for manufacturing.
Boosting Chinese Exports in April
China, despite having several challenges of its business outlook for the coming months, reported that the export of the country in April was a better-than-expected result, compared with the performance in March. However, the full-year outlook for its exports remained uncertain since the global economy was moving towards a recession and the global health crisis would be a major impediment for demands for Chinese goods in the future.
Surpassing the analysts’ expectation, the customs data showed on Thursday, May 7, 2020, that the Chinese overseas shipments in April rose 3.5% from a year earlier, which marked the first positive growth since December last year. Earlier, several economists expected a 15.7% drop in Chinese exports with a 6.6% plunge in March.
Louis Kuijs of Oxford Economics said in a note, “April shipments may have been boosted by exporters making up for shortfalls in the first quarter due to supply constraints then.” Kujis added, “(But) in any case, as heralded by the weakness of new export orders in the PMIs, exports should weaken significantly in the near term as China’s key trading partners fall into a deep recession, although our baseline forecast sees global demand recovering in the second half.”
Import Remained Slumping in China
On the other hand, China witnessed a sharp decline in imports as it sank 14.2% from a year earlier, the biggest contraction since January 2016, and below market expectations of an 11.2% drop. Meanwhile, China’s trade surplus for the period stood at $45.34 billion, compared with an expected $6.35 billion surplus in the poll and a surplus of $19.93 billion in March.
Despite a major improvement of the virus outbreak in China, the imports of the country remained falling since many countries have been struggling for health crisis and economy crashing due to further escalation of the virus outbreak. In China, the coronavirus pandemic was under control domestically and the economy has re-accelerated due to lifting of lockdown restrictions
Nonetheless, economists warned about the immediate recovery of the economy and projected that the global trade outlook would be still unpredicted. Considering the uncertainty of the global market, many factories had been refusing overseas orders as the global demand was still tied up.
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