Strong export growth for China in May due to factory and port recovery

LOCKDOWNS

Chinese exports grew by 16.9% in May compared to the previous year. Analysts originally expected only 8% growth for May.This is reported by Reuters news agency. It is the fastest increase since January this year. In April there was an export growth of 3.9%. The Chinese were also able to record an import growth of 4.1% in May compared to last year. It is the first time since January that imports have increased again.

China recently eased corona restrictions, allowing factories to increase production and ports to increase capacity again. According to Reuters, daily container throughput at the Port of Shanghai recovered to 95.3% of normal capacity in May.

“If global demand remains as strong as it was in 2021, China should be able to maintain an average annual growth rate of 15%. At least during the third quarter of 2022′, Iris Pang, chief economist on China at ING, told Reuters.

Inflation

However, the Chinese economy still appears to be struggling. Chinese Prime Minister Li Keqiang recently announced support measures to help the Chinese economy and business.

“After the recovery in May and June, pressure on exports will increase in the second half of the year due to things like global inflation,” Chang Ran, senior analyst at Zhixin Investment Research Institute, told Reuters. Moreover, Shanghai is not yet fully open. Part of the city is now back in lockdown.