In May, Chinese export growth was the fastest since January. In addition, it significantly exceeded the expectations of analysts, who, according to Reuters, expected an increase of eight percent.
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Following the easing of coronavirus restrictions in important industrial areas, China’s customs office said exports rose 16.9 percent year on year to $ 308.3 billion (more than $ 7 trillion) in May and rose 3.7 percent in April.
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China is pursuing a zero-tolerance strategy for coronavirus in an effort to prevent its spread. This strategy has had a significant impact on the economy in recent months, leading, among other things, to the introduction of strict two-month closures in China’s most populous city, Shanghai, which is the country’s economic center.
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Most factories in Shanghai and other cities have already received permission to resume operations. However, it is expected that it will take weeks to months for industrial activity to return to normal levels, the AP agency warned.
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According to analysts, China’s foreign trade prospects continue to be overshadowed by a number of global risks, including high commodity prices, uncertainty related to the war in Ukraine and slowing foreign demand. In addition, interest in Chinese products could undermine the resumption of production in other countries and the shift in global spending from goods to services.
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The government’s goal is for Chinese economy growth to reach 5.5 percent this year. However, some forecasters have already worsened this year’s growth estimates to two percent. According to the statistical office, China’s gross domestic product (GDP) increased by 4.8 percent year on year in the first quarter. Growth thus accelerated from four percent at the end of last year.
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