China’s economy after being bruised by COVID led lockdowns, China’s export growth unexpectedly picked up speed last month. This comes as a relief also for the world’s second largest economy that is trying to gain some momentum now. Data shows China’s exports were up 18% in July to US$333 billion from last year at a faster pace compared with 17.9% increase in June. It has also beaten analysts’ expectations for 15% gain. Experts have predicted China’s exports will fade as global economy looks increasingly likely to be heading into a serious slowdown or maybe recession.
Economies worldwide are weighed down by soaring prices and rising interest rates but there were signs that transport and supply chain disruptions caused by COVID restrictions were continuing to ease. It is just in time for shippers preparing for peak year end shopping demands like sports goods, may also have been buoyed by pent up demand from South east Asia as supply issues ease and factories there rammed up manufacturing. China’s exports dependent economy faced massive challenges in COVID lockdowns. China’s adherence of strict COVID policy has led to damage to economy for example the gambling hub of Macau has recently been opened after a strict code with lockdowns were observed there.
However, imports remained lower than expected, growing 2.3% in July compared to a year ago. This was lower than economist estimates of 4% which suggested weak domestic demand amid lockdowns across the country. The ruling communist party had set a target of 5.5% growth of economy in April, whereas the International Monetary Fund in July predicted China’s economy would grow 3.3% this year.