China’s robust exports and imports boost economic recovery
Chinese exports skyrocketed by 30.6% last month in U.S. dollar terms compared to the previous year’s data. While the number is significant, it’s still lower than the 35.5% increase that analysts had expected. At the same time, the country’s imports in U.S. dollar terms surged forward by 38.1% in March from a year ago. The analysts forecasted only a 23.3% increase in that field.
China’s trade surplus reduced to $13.8 billion in March due to the stronger-than-expected jump in imports. The latest data showed that China’s economic rebound is entering a different phase – noted Paras Anand, Asia-Pacific chief investment officer at Fidelity International.
According to him, China’s recovery from the coronavirus pandemic had concentrated on output over the last few months. The substantial export numbers attest to that fact. However, it seems demand is picking up now. Furthermore, consumption is also picking up very strongly as the recovery in China is getting to a more mature level.
Will the Chinese economy continue its fast recovery?
The data suggests the Chinese economy will continue to gather momentum in the coming month. However, a lagging consumer rebound and Sino-U.S. tensions, along with a resurgence in coronavirus cases in many countries, have raised risks for the outlook.
Nie Wen, an economist at Hwabao Trust, noted that strong foreign demand would likely be sustained throughout Q2 as the global economy further recovers. However, industrial sectors in other countries are gradually restarting with the acceleration in global vaccination efforts. So, China’s stellar export growth may not begin to slide again.
There have been sporadic COVID-19 cases in China’s border cities, but authorities have largely contained the virus.
Asian stock markets were positive after receiving the latest data. Strong imports gave investors confidence that domestic demand is improving as part of the rebound from the pandemic.
According to data, total Chinese imports soared by 38.1% year-on-year last month, showing the fastest pace since February 2017 on high commodity prices.
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