(NBS) Exports from China rose by 3.9% in April from the prior year, marking its weakest rate since June 2020.
The weak exports in April reflected the impacts of Covid-19 lockdowns, with the decline a downturn compared to an increase of 14.7% in March. Analysts expected a 2.7% increase in exports.
Imports were unchanged after falling by a marginal 0.1% in March, led by an almost 57% increase in Russia’s sourcing due to the rising price of oil and gas. The decline was lower than an expected 3% slump.
Pinpoint Asset Management president and chief economist Zhang Zhiwei says the export weakness may continue in May as supply chain bottlenecks persist.
The declining exports is seen as a headwind to China’s growth as it is regarded as one of its strongest economic expansion drivers. A stronger trade helped China post a better-than-expected growth last year after the Covid-19 slowdowns in 2020.
Analysts are now reading contradictions in China’s path to economic revival. The government has maintained a strict zero Covid-19 policy while also pledging more support to the economy.
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