China trade: slowing exports to bottom out in late 2023 amid ‘increasingly clear’ weak demand
- China’s exports rose by 8.5 per cent in April compared with a year earlier, while imports fell by 7.9 per cent last month, year on year
- Beijing has pledged to shore up trade to support the overall economic recovery, but China’s exports have struggled due to weak global demand
China’s overseas shipments are set to struggle further, analysts said, after exports grew at a slower pace in April despite a coronavirus-induced low base last year, with the slowdown of imports further accelerating, adding to the uncertainties over the post-Covid economic recovery.
Imports, meanwhile, fell short of expectations and shrank by 7.9 per cent in April from a year earlier to US$205.21 billion, down further from a fall of 1.4 per cent in March, amid weak demand and lower commodity prices.
It seems increasingly clear that the global economic slowdown is weighing on China’s exports
“It seems increasingly clear that the global economic slowdown is weighing on China’s exports,” said Iris Pang, chief economist for Greater China at ING.
“Falling imports – an input for future exports – suggest that a further deterioration of exports in the coming months is highly likely.
“It is looking more likely that, in response, the government will step in to support the manufacturing sector’s labour market through fiscal stimulus.”