Chinese trade remains strong, but exports are missing out on forecasts
From Gina Lee
Investing.com – Chinese exports in March despite strengthening global demand, while imports grew faster, according to earlier data.
grew 49% year over year, above the 35.5% growth forecast by Investing.com, but below the 60.6% growth seen in February.
Although growth slowed from record earnings in February, export momentum remained strong as COVID-19 vaccines continued to move globally and a rebound in global growth, albeit unevenly, fueled demand.
“Export outperformance remains an issue for China’s recovery,” Natwest Markets economist Peiqian Liu told Bloomberg.
Meanwhille grew 38.1% year over year, outpacing the 23.3% growth in Inveting.com’s forecasts and the 22.2% growth in February.
The surge in imports was due to higher volumes and prices of raw materials, said senior Chinese strategist Xing Zhaopeng of Australia and New Zealand Banking Group Ltd. opposite Bloomberg.
“While rising commodity prices could increase import costs in the near future, the recovery in external demand could offset some of the impact,” he said.
It was $ 116.35 billion compared to $ 52.05 billion and $ 103.25 billion in February.
Although the Chinese Ministry of Commerce has not provided a forecast for the country’s foreign trade prospects, it has pledged to push for stable foreign trade development in 2021. The World Trade Organization, meanwhile, predicted that world trade would increase 8% in 2021, the largest increase since 2010 after falling 5.3% in 2020.
Comparing it to numbers from early 2020 when China entered a COVID-19-induced strict lockdown that disrupted much of its economy also skewed the numbers. The bias led Premier Li Keqiang to press investors and companies over the weekend to look beyond the “base effect” and use other data and methods to assess the economic situation.
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