China's Exports Growth Remains Slow But Consistent In April
According to a poll of analysts, China's exports increased during April but at a much lower speed than last month. The growth can be traced back to the unfulfilled orders during the COVID. However, slow global growth remains a major threat to the Chinese export sector.
The marketing is expecting Chinese exports to rise by 8.0% YoY during April after posting growth of 14.8% during March. Although the growth of 8% is good, we can't deny the fact that it is a lot slower than what we saw during March.
No Growth In Chinese Imports
When asked about the imports made by the Chinese economy, the experts said that no growth is expected at all. Just a month ago, a 1.4% decline on a YoY basis was noticed in the imports, which paints a not-so-good picture of the Chinese economy.
We also can't deny the fact that the major trade partners of China are standing at the edge of a recession. In addition, the improvement seen during March also highlights that unfulfilled orders are now finally complete.
If we look at the manufacturing purchasing manager's index, it shows a sharp contraction in new export orders during April. This highlights the challenges faced by businesses and Chinese policymakers during the post-COVID recovery era.
According to an economist at Nomura, a growth of 14.8% YoY is unsustainable at best. They also added that the export growth would likely be in single-digit or even dip into the negative territory.
The reason for painting this bleak picture of the Chinese economy is the rise in geopolitical tensions and a slowdown in the global economy.
China also imports a lot of items from South Korea - So if we look at the exports made by South Korea to China, they went dow by 26.5% during April! So even on that front, it appears that the Chinese economy is showing signs of a slowdown.