China’s exports return to growth in April, imports beat forecast
2024.05.09 00:01
BEIJING (Reuters) – China’s export returned to growth in April after contracting sharply in March, customs data showed on Thursday, suggesting some improvement in overseas demand that policymakers will hope extends through the rest of this year.
Shipments from China grew 1.5% year-on-year last month, in line with the increase forecast in a Reuters poll of economists. They fell 7.5% in March, which marked the first contraction since November.
Imports for April increased 8.4%, beating an expected 4.8% rise.
China’s economy grew faster than expected in the first quarter, although data on exports, consumer inflation, producer prices and bank lending for March showed that momentum could be faltering again. A protracted property crisis is also showing few signs of abating, spurring calls for more policy stimulus.
In the first quarter, both imports and exports rose 1.5% year-on-year.
A string of forecast-beating economic data over the January-February period and a factory owners survey for March suggested the world’s No.2 economy had managed to successfully navigate some early challenges, buying officials more time to lift fragile investor confidence and revitalise growth.
However, Beijing has its work cut out. Rating agency Fitch cut its outlook on China’s sovereign credit rating to negative last month, citing risks to public finances as growth slows and government debt rises.
The Politburo of the Communist Party, the party’s top decision-making body, said last month it would step up support for the economy with prudent monetary policy and proactive fiscal policies, including through interest rates and bank reserve requirement ratios.
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China has set an economic growth target for 2024 of around 5%, which many analysts say will be a challenge to achieve without much more stimulus.
Chinese exporters had a tough time for most of last year as soaring interest rates weighed on overseas demand. With the Federal Reserve and other developed nations showing no urgency to cut borrowing costs, manufacturers may face further strains as they battle for market share.
Analysts say Chinese exporters are continuing to slash prices to maintain sales abroad amid stubbornly weak domestic demand. That was highlighted by export volumes edging up to record highs in March.
China’s trade surplus grew to $72.35 billion, compared with a forecast of $77.50 billion in the poll and $58.55 billion in March.
