BEIJING: China’s exports rose sharply in March while imports growth surged to the highest in four years in yet another boost to the nation’s economic recovery, signalling improving global demand amid progress in worldwide Covid-19 vaccination.
The data suggests the world’s second largest economy will continue to gather momentum as it emerges from the Covid-19-led slump in early 2020, though a lagging consumer rebound, a resurgence in Covid-19 cases in many countries and Sino-US tensions have raised risks for the outlook.
Exports in dollar terms soared 30.6% in March from a year earlier, but at a slower pace from a record 154.9% growth in February. The analysts polled by Reuters have forecast a 35.5% jump in shipments.
“Strong foreign demand is likely to be sustained throughout the second quarter as the global economy further recovers,“ said Nie Wen, an economist at Hwabao Trust.
“But with the acceleration in global vaccination efforts, industrial sectors in other countries are gradually restarting. It remains to be seen that if China’s stellar export growth will begin to slide.”
Despite sporadic Covid-19 cases in China’s border cities, authorities have been able to largely contain the virus in a boost to the lagging consumer recovery.
The data showed total Chinese imports jumped 38.1% year-on-year last month, the fastest pace since February 2017 on high commodity prices, beating a 23.3% forecast and compared with 17.3% growth in February.
China posted a trade surplus of US$13.8 billion (RM57 billion) last month, versus analysts expectations for the surplus to rise to US$52.05 billion from US$37.88 billion in February.
Official and private manufacturing surveys in China pointed to robust growth, with export orders returning to growth amid improving foreign demand.
But the resurgent Covid-19 infections abroad and constraints in global trade have left some companies grappling with prolonged delivery timeframes and surging prices of raw materials.
Makers of cars and electronic devices from televisions to smartphones are sounding alarm bells about a global shortage of chips, which is causing manufacturing delays as consumer demand bounces back from the coronavirus crisis.
China’s gross domestic product expanded 2.3% last year, the only major economy to post growth in 2020, underpinned by solid demand for goods such as medical and work-from-home equipment.
This year, China has set a modest growth target of at least 6%, as authorities plotted a careful course out of a year disrupted by Covid-19 and amid heightened tensions with the United States.
China’s trade surplus with the United States slipped to US$21.37 billion in March from a US$23.01 billion in February. – Reuters
