China’s exports and imports grew at the slowest pace in four months in August, hit by an inflation-driven slump in foreign demand and disrupted domestic production due to COVID-19 lockdowns and heatwaves.
Exports rose 7.1% yoy in August, up from an 18% increase in July, it was reported Reuterswell below analysts’ expectations of a 12.8% rise.
Imports remained tepid, growing just 0.3% in August, compared with 2.3% in July, against a forecast increase of 1.1%, the report said.
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As a result, the trade surplus narrowed to $79.39 billion, down from a surplus of $101.26 billion in July — a record figure for a month-long goods trade balance for any nation in history, Reuters reported.
restrained demand: It is worth noting that despite the yuan slipping to a two-year low, China’s exports have not received a significant boost. This clearly reflects that demand in overseas markets remains weak.
Part of that could be due to a drop in domestic production disrupted by lockdowns. The Yiwu export hub ordered a three-day lockdown in early August to contain a COVID outbreak that disrupted local shipments and the supply of Christmas goods during the peak season, Reuters reported.
take experts: Bruce Pangchief economist at Jones Lang Lasalle Reuters said the remarkably slower import growth suggests so sector has been struggling with a wave of headwinds in recent months that are unlikely to abate anytime soon. “Electricity rationing measures are affecting production. Broad dollar strength is also putting pressure on imports,” he said.
