Chinese exports declined in October, the first such decline since mid-2020, the country’s customs authorities said Monday. The decline in the volume of export operations of the world’s second largest economy is associated with slowing domestic growth and the threat of a global recession, France-Presse (AFP) reports today, 7 November.
Exports fell 0.3% yoy last month, a steep drop from the 5.7% increase in September and well below analysts’ expectations, according to China’s General Customs Administration.
Year-on-year, imports fell 0.7% in October, a negative value for the first time since March this year.
The slowdown in China’s foreign trade comes as global demand for Chinese goods weakens due to soaring energy prices and the US faces the threat of a recession. Sporadic blockages in the Middle Kingdom linked to the Covid-19 outbreaks have also undermined local consumer enthusiasm and business confidence.
Analysts interviewed by Bloomberg had expected exports to rise by 4.3% in October, but only expected imports to rise by 0.1% due to weakening domestic demand.
“The recent decline in export volumes appears to reflect a reversal in the surge in global demand for Chinese goods during the era of the pandemic,” – observes an analyst from Capital Economics Jichun Huang.
Imports are likely to continue to decline given the difficult domestic outlook, “he added.
Official data showed that industrial activity in China declined in October. Factory activity was hit hard by the massive coronavirus freeze that paralyzed major industrial cities like Shanghai, Shenzhen and Chengdu earlier this year.
Apple Corp. last Monday warned of a delay in deliveries of its products after Chinese restrictions related to Covid-19 “temporarily affected” production at its huge plant in Zhengzhou in central China.
The GOC has set an annual economic growth target of around 5.5%, but many observers believe it will be difficult for the country to achieve this despite announcing 3.9% stronger-than-expected GDP growth in the year. third quarter.
