China’s Growth Looks Fragile Despite Strong Exports

CHINA’S EXPORTS CONTINUE to grow strongly, for now, but imports have almost flatlined in comparison, suggesting a refilling of supply chains after Covid-19 lockdowns but not a commensurate pick up in pent-up domestic demand.

According to the General Administration of Customs, goods exports rose 18% year-on-year in July, barely changing from the growth rate in May and June.

However, imports grew by 2.3% year-on-year in July, the fifth month of sub-4% growth.

Exports to ASEAN rose by 33.5% year-on-year, and to the EU, by 23.5%, more than offsetting a slowdown in exports to the United States, up by 11% year-on-year, having grown by closer to 20% in May and June.

Exports to Russia increased significantly, up 22.2% in the month, reversing a drop of 17% in June.

The headwinds in the global economy will likely slow the progress of China’s exporters in the second half. But with domestic demand’s recovery remaining sluggish and downside risks from the property market and Covid-19 lockdowns persisting, overall GDP growth will be fragile.

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One response to “China’s Growth Looks Fragile Despite Strong Exports

  1. Pingback: Rate Cut Only Highlights Slowing Economic Growth In China | China Bystander

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