China’s exports rise unexpectedly in July

Official data showed on Sunday that China’s exports rose unexpectedly in July despite weak global demand.

China’s exports rose 18% year-on-year in July from 17.9% in the previous month, according to customs data.

That was well above the 14.6 percent growth rate economists had predicted in a Bloomberg News poll.

But imports remained low as ongoing measures to combat the coronavirus pandemic kept consumers on their toes, with imports recording a 2.3 percent rise from 1 percent in June.

But that was less than the 4% rise expected by analysts, who had expected the easing of Covid 19 restrictions to boost domestic consumption.

China is the only major economy still on a zero Covid strategy, with sudden shutdowns and lengthy lockdowns hurting business activity and making consumers nervous.

China’s overall trade surplus rose to $101.26 billion from $97.9 billion in June.

China recorded the slowest economic growth since the Corona virus outbreak last month, expanding just 0.4 percent in the second quarter due to lockdowns and a weak real estate market, making the government’s target unattainable.

Analysts say the official economic growth target of 5.5% this year is unlikely to be met, given a significant acceleration is needed in the second half of this year.

Source: AFP.

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