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China’s exports gain steam though outlook remains uncertain

Imports again disappoint, highlighting weak domestic demand

Ellen Zhang and Ryan Woo (Reuters) (The Jakarta Post)
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Beijing
Mon, August 8, 2022 Published on Aug. 7, 2022 Published on 2022-08-07T21:22:07+07:00

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hina's export growth unexpectedly picked up speed in July, offering an encouraging boost to the economy as its struggles to recover from a COVID-induced slump, but weakening global demand could start to drag on shipments in coming months.

Exports grew 18 percent in July from a year earlier, the fastest pace this year, official customs data showed on Sunday, compared with a 17.9 percent increase in June and beating analysts' expectations for a 15 percent gain.

Exports have been one of the few bright spots for the Chinese economy in 2022, as widespread lockdowns hit businesses and consumers hard and the once-mighty property market lurches from crisis to crisis.

"China's export growth surprised again on the upside. [It] continues to help China's economy in a difficult year as domestic demand remains sluggish," said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

However, many analysts have expected shipments to fade amid cooling global consumption.

A global factory survey released last week showed demand weakened in July, with orders and output indexes falling to their weakest levels since the onset of the COVID-19 pandemic in early 2020.

China's official manufacturing survey indicated activity contracted last month, raising fears that the economy's recovery from lockdowns in spring will be slower and bumpier than expected.

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