China’s trade economy roared back to growth in June, as coronavirus lockdowns eased abroad

China’s exports rose by 0.5 per cent in June from a year ago, while imports rose by 2.7 per cent, showing a big recovery in trade

Easing lockdowns overseas helped support a recovery, while a surge in imports suggests improved demand in China

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China’s traders have been boosted by economic reopening around the world, as countries begin to claw their way back to capacity after the pandemic caused sweeping disruption to business and consumption. Photo: Bloomberg

Published: 11:01am, 14 Jul 2020Updated: 1:00pm, 14 Jul 2020

China’s trade economy roared back to growth in June, with exports and imports both recovering from the coronavirus lockdown, data released on Tuesday showed.

Exports from the world’s second largest economy rose by 0.5 per cent from a year earlier in June, a sharp improvement on May’s minus 3.3 per cent slump.

Chinese imports rose by 2.7 per cent from June 2019’s levels, much improved on May’s minus 16.7 per cent and the first monthly import growth since December 2019.

Both measurements were well ahead of the median forecasts of a poll of analysts conducted by Bloomberg, which had predicted exports to shrink by 2.0 per cent and imports to fall 9.0 per cent from a year earlier, respectively.

China posted a trade surplus of US$46.2 billion in June, narrower than May’s balance of US$62.93 per cent, sparked by the improvement in imports.

“Inbound shipments jumped the most in month on month terms in years, adding to evidence that domestic demand was strong at the end of quarter two. Exports also strengthened as slower shipments of products related to Covid-19 were more than offset by strength elsewhere,” said Martin Rasmussen, China Economist at Capital Economics.

China’s traders have been boosted by economic reopening around the world, as countries begin to claw their way back to capacity after the coronavirus pandemic caused sweeping disruption to business and consumption.