Economists are eyeing China this year now that the country has fully reopened its economy to the outside world. The expectation was that this would give the world economy a significant boost, but so far Chinese trade data has been disappointing. “There is a recovery in activity, but it’s not going very well,” says BNR in-house economist Han de Jong.
Chinese exports have increased by more than 8.5% in the last month. This is more than economists expected, who expected 8%. The increase is mainly due to the corona measures that were still in force last year, but to which China has now said goodbye. A month earlier, the increase in exports amounted to as much as 14.8%.
Lower prices
What really shocked economists, however, was the decline in the import figure. A drop of 0.2 percent was expected, but China recorded an import drop of no less than 7.9 percent in April. As a result, the trade surplus (exports minus imports) has increased to over $90 billion. “We actually prefer to think in terms of volumes, so the drop in imports could be related to lower prices for imported goods.”
De Jong therefore suspects that China lives mainly on its own supplies. “This is great for China, but for the rest of the world it means that China is not yet driving our business.” However, the domestic economist expects China to show better numbers later this year. “Slow down is a good word, with an emphasis on slowness.”
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
