China’s exports fell last month at their fastest pace since the onset three years ago of the COVID-19 pandemic, as an ailing global economy puts mounting pressure on Chinese policymakers for fresh stimulus measures.
Momentum in China’s post-COVID recovery has slowed after a brisk pickup in the first quarter, with analysts now downgrading their projections for the economy for the rest of the year.
Outbound shipments from the world’s second-largest economy slumped a worse-than-expected 12.4% year-on-year in June, data from China’s Customs Bureau showed on Thursday, following a drop of 7.5% in May.
Imports contracted 6.8%, steeper than an expected 4.0% decline and the previous month’s 4.5% fall.
“The global downturn in goods demand will continue to weigh on exports,” said Zichun Huang, China economist at Capital Economics, with a further decline in exports seen likely before they bottom out towards the end of the year.
“But the good news is that the worst of the decline in foreign demand is probably already behind us,” she added.
Exports to the United States – the top destination for Chinese goods – have fallen the most among its major trading partners over the first half of the year, as diplomatic tensions mount over chip technology and other issues, while exports to Russia have risen sharply, although from a modest level.
With exports accounting for about one-fifth of the economy and the troubled property sector for about one-third, China’s prospects have dimmed for a quick recovery after COVID-related lockdowns battered the economy in 2022.
Source: www.hellenicshippingnews.com
