By Zhang Mengying
Investing.com – China’s exports in May grew faster than the market expected as factories' production recovered and COVID-19 disruption on logistics eased.
The government data released earlier in the day showed that China’s May exports grew 16.9% year on year. Forecasts prepared by Investing.com predicted a growth of 8.0% while growth of 3.9% was recorded in April.
Data also showed that China’s imports in May grew 4.1% year-on-year, the first gain in three months and compared with flat growth in April. Forecasts prepared by Investing.com predicted a growth of 2.0%, indicating a growing domestic demand as COVID-19 curbs eased.
The stronger-than-expected trade data indicated a rebound in the world’s second-largest economy. The country imposed stringent measures this year over the worst COVID-19 outbreak since 2020. Shanghai entered into lockdown for two months and has reopened since June 1.
The Shanghai port, the world’s largest port, has also been handling more cargo since May, with official data showing that daily container throughput back to 95.3% of its normal level in late May.
The State Council has called on local officials to revive supply chains and restore economic growth.
China’s cabinet recently also announced 33 measures covering fiscal, financial, investment, and industrial policies to stabilize the economy.
However, China’s trade outlook also depends on factors such as high raw materials costs and uncertainties from the Ukraine war. Recovery levels in other economies also affect demand for Chinese goods. Therefore, some analysts it is hard for China to achieve the official gross domestic products (GDP) target of around 5.5% this year.