China trade balance grows more than expected in Oct as exports surge
2024.11.06 22:50
Investing.com– China’s trade balance grew more than expected in October, as export growth blew past expectations on robust overseas demand and local production, while imports shrank amid weak local demand.
grew to $95.27 billion in October, customs data showed on Thursday. The reading was higher than expectations for a surplus of $73.5 billion and increased from the $81.71 billion seen in the prior month.
The stronger trade surplus was driven chiefly by a substantial increase in , which grew 12.7% year-on-year in October. The rise was much higher than expectations for an increase of 5%, and picked up sharply from the 2.4% rise seen in the prior month.
Stronger exports were driven chiefly by robust overseas demand, while local producers largely shrugged off the impact of recent trade tariffs increases by the west, especially on China’s electric vehicle sector.
But local demand remained weak, as Chinese shrank 2.3% y-o-y in October, more than expectations for a 1.5% drop and reversing course from a 0.3% increase in the prior month.
Beijing outlined its most aggressive course of stimulus measures in the past month, aimed chiefly at supporting local economic growth. But their scale and execution still remains unclear.
