China’s trade economy roared back to growth in June, as coronavirus lockdowns eased abroad
China’s exports rose by 0.5 per cent in June from a year ago, while imports rose by 2.7 per cent, showing a big recovery in trade. Easing lockdowns overseas helped support a recovery, while a surge in imports suggests improved demand in China
China’s trade economy roared back to growth in June, with exports and imports both recovering from the coronavirus lockdown, data released on Tuesday showed.
Exports from the world’s second largest economy rose by 0.5 per cent from a year earlier in June, a sharp improvement on May’s minus 3.3 per cent slump.
Chinese imports rose by 2.7 per cent from June 2019’s levels, much improved on May’s minus 16.7 per cent and the first monthly import growth since December 2019.
Both measurements were well ahead of the median forecasts of a poll of analysts conducted by Bloomberg, which had predicted exports to shrink by 2.0 per cent and imports to fall 9.0 per cent from a year earlier, respectively.
China posted a trade surplus of US$46.2 billion in June, narrower than May’s balance of US$62.93 per cent, sparked by the improvement in imports.
China’s traders have been boosted by economic reopening around the world, as countries begin to claw their way back to capacity after the coronavirus pandemic caused sweeping disruption to business and consumption.
Tuesday’s trade data arrived ahead of Thursday’s quarterly growth release, which is expected by analysts to show that China posted low single-digit growth in the second quarter in the year, a strong recovery from the minus 6.8 per cent decline in the first three months of the year.
The latest progression in the trade economy was telegraphed by positive purchasing managers’ indices (PMIs) for both manufacturing and non-manufacturing sectors for four successive months. The export orders reading in the official manufacturing PMI for June remained negative, but improved on previous months.
While waves of viral outbreaks have beset efforts to restart some economies, particularly in the United States, governments appear keen to strike a balance between viral containment and economic growth.