China exports rise with fewer Covid restrictions despite fragile balance

The number of exports from China grew at a double-digit pace in May, beating expectations in an encouraging trend for the world’s second-biggest economy, as factories resume work and logistical difficulties ease after authorities eased some trade restrictions to fight Covid-19 in Shanghai.

Imports also expanded for the first time in three months, providing Chinese officials with relief as they try to chart an economic path out of the supply-side shock that has rocked global trade and financial markets in recent months.

See below the track record of Brazilian container shipments to China between January 2019 and April 2022. The data below was extracted from the DataLiner platform.

Brazilian Exports in Containers to China | Jan 2019 – April 2022 | TEU

Source: DataLiner (click here to request a demo)

However, the outlook for exports from China, closely watched by investors as an indicator of global economic health, still points to the risks of a months-long war in Ukraine and rising raw material costs. These same factors, along with rising interest rates in the US and Europe, have raised concerns about a global recession.

Exports increased by 16.9% year on year, the largest gain since January of this year and more than double expert projections of an 8%  increase. In April, exports climbed by 3.9%.

“We believe this recovery can continue if there are no additional lockdowns,” said Iris Pang, chief economist at ING, adding that the comeback in exports and imports was primarily due to the rebound at Shanghai’s port in the last week of May.

Source: Isto É Dinheiro

To read the full original article, please go to:

https://www.istoedinheiro.com.br/exportacoes-da-china-aumentam/

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