Exports jumped 32.3% since April 2020, which would likely give a turbo boost to the Chinese economy this year, according to analysts.
China expanded its impressive trade performance in April, with an unexpected acceleration in exports and growth in imports in a decade, with a boost to the world’s second largest economy.
A rapid economic recovery in the United States and stagnant factory production in other countries affected by the coronavirus have boosted demand for products made in China, analysts said.
Exports in dollars rose 32.3 percent from the previous year to $ 263.92 million, China’s General Administration of Customs said on Friday, beating analysts’ forecasts on the 24th. 1 percent and 30.6 percent growth in March.
“China’s export growth was again surprisingly upward,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management, adding that two factors – the growing U.S. economy and the COVID crisis – 19 in India, which led to the transfer of some orders to China – probably contributed to strong export growth.
“We expect China’s export growth to remain strong during the second half of this year, as the above two factors are likely to continue to favor Chinese manufacturers. Exports will be a key pillar for growth in China this year. ”.
The figures helped boost the yuan and stocks in China and other Asian markets.
Imports were also impressive, with an increase of 43.1% over the previous year, the fastest gain since January 2011 and the rise of 38.1% in March. It was also slightly faster than the 42.5% increase given by a survey of analysts by the Reuters news agency, reinforced by the rise in commodity prices.
But Zhang Yi, chief economist at Zhonghai Shengrong Capital Management, said it remains to be seen whether strong import growth, mainly driven by price inflation, could be maintained as China cancels its support measures. fiscal.
“It should be noted that the current rapid year-on-year growth was largely due to the negative growth of a year ago. The two-year average growth was 10%, which is not so strong. “
In fact, import volumes of some products are beginning to decline. Imports of iron ore from China fell 3.5% in April from the previous month, while imports of copper fell 12.2% month-on-month.
China’s trade surplus of $ 42.85 billion was wider than the $ 28.1 billion surplus given in the Reuters poll.
However, analysts still expect China’s economic growth to slow to 18.3% of record expansion from January to March, as the COVID-19 pandemic disrupts global supply chains, slowing the movement of goods and increasing shipping costs.
“Despite the optimistic demand outlook and policy support, some supply-side constraints are expected to persist, including global chip shortages, disruption of shipping, container shortages and rates freight to shoot, “Christina Zhu, an economist at Moody’s Analytics, said in a note. Thursday.
The persistent shortage of semiconductors needed for a wide range of products, including consumer electronics and automobiles, is also beginning to hurt manufacturers, weighing on production.
Etelec Electronics, a Zhongshan-based LED light maker, stopped taking on new orders as of April 26 due to a shortage of integrated circuits, the company said in a statement seen by Reuters.
The official index of manufacturing purchasing managers in China last week showed that growth in factory activity slowed in April a month earlier, as bottlenecks supply came into production.