(NBS) Exports from China rose by 16.9% in May from the prior year, its strongest expansion this year. The growth was more than double expectations of an 8.0% increase.
The rise in exports happens amid a resumption in factory activity following a continued easing of Covid-19 restrictions.
Imports also expanded, adding 4.1% in May from the prior year, its first increase in three months. The increase was higher than estimates of a 2.0% jump.
Following the rising exports, China’s trade surplus was $78.76 billion, exceeding forecasts of a $58 billion surplus. The surplus was also greater than April’s $51.12 billion.
Zhixin Investment Research Institute analyst Chang Ran says that China’s exports are bound to increase. He says the recent depreciation of the yuan will boost exports more and increase corporate earnings.
Challenges of global inflation and policy tightening in major economies are cited as headwinds in the export recovery.
FTSE 100 is down -0.62%, GBPUSD is down -0.19%.
