China’s exports unexpectedly rebounded to growth in March despite a drop in US and European demands following interest rate increases to cool inflation.
Customs data released on Thursday showed that exports increased 14.8% over the previous year to USD 315.6 Billion, following a 6.8% contraction in January and Feb. Imports fell 1.4 per cent to USD 227.1 billion. However, the drop was less than the 10.2 per cent decline in the two previous months.
China’s politically sensitive trade surplus increased by 82 per cent over the previous year to USD 88,2 billion. China’s largest export markets – the United States and the 27-nation European Union – saw a decline in their exports.
General Administration of Customs of China announced that exports for the foremost quarter of this year grew by 0.5 per cent over the same period in 2022 to USD 821.8 Billion. Total imports fell 7.1% to USD 617 billion.
The trade weakness complicates President Xi Jinping’s government’s efforts to restore economic growth, which last year fell to 3%, the second lowest rate since 1970. The Communist Party, which is in power, set a growth target of around 5% for this year.