(Reuters) Inbound shipments to China fell by 0.1% in March from the prior year, the first decline since August 2020 due to Covid-19 restrictions.
The Covid-19 restrictions reportedly curtailed freight arrivals in the country while also weakening domestic demand.
The decline in China’s imports was broad-based, with inbounds of crude oil down by 14% in March, while the volumes of gas imports hit the lowest since October 2020.
Exports also slowed, rising by 14.7% in March, compared to a gain of 16.3% in January to February. The gain surpassed estimates of 13% rise.
Julian Evans-Pritchard, the senior China economist at Capital Economics, says although Covid-19 outbreaks were partly to blame, changes on the demand-side played a greater role.
Analysts predict that imports will continue to be weak in the coming quarter, while exports will decline further. Zheng Houcheng, director of the Yingda Securities Research Institute, says exports will continue to be hit by the rising commodity prices.
China still posted a trade surplus of $47.38 billion in trade surplus in March, compared to a forecast of $22.4 billion. Surplus in the January to February period was $115.95 billion.
The falling imports and exports are now seen prompting China’s central bank to introduce new policy support measures, with a state official, on Wednesday, calling for a cut in the bank’s reserve requirements and interest rates.
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