August 11, 2022

Although imports remained weak, China’s export growth surprisingly accelerated in July, providing an encouraging boost to the economy as it fights to rebound from a severe, Covid-induced recession.

The demand was weaker in July, according to a worldwide factory survey published last week, with orders and output indexes falling to their lowest levels since the start of the Covid-19 epidemic in early 2020.

According to China’s official manufacturing survey, activity decreased last month, which fuels concerns that the economy’s rebound from widespread lockdowns in the spring may be slower and more difficult than anticipated.

As the country battles to rebound from a Covid-induced slowdown, China’s export growth surprisingly accelerated in July. However, falling global demand may start to affect shipments in the months to come.

Exports increased 18.0 percent in July compared to the same month last year, the strongest rate this year, according to official customs statistics released on Sunday. This was higher than the 17.9 percent growth in June and beyond experts’ predictions of a 15.0 percent increase.

One of the few bright spots for the Chinese economy in 2022 has been outbound shipments as extensive lockdowns severely impact firms and consumers and the once-dominant real estate industry lurches from crisis to crisis.

However, many observers had anticipated a decline in exports as the global economy appeared to be slowing down significantly due to rising interest rates and skyrocketing prices.

The demand was weaker in July, according to a worldwide factory survey published last week, with orders and output indexes falling to their lowest levels since the start of the Covid-19 epidemic in early 2020.According to China’s official manufacturing survey, activity decreased last month, which fuels concerns that the economy’s rebound from lockdowns in the spring will be slower and more difficult than anticipated.

But there were indications that the transport and supply chain difficulties brought on the Covid limitations were beginning to subside, which came at the perfect moment for shippers to get ready for the high holiday shopping season.

According to figures issued by the domestic port association, the throughput of foreign trade containers at eight main Chinese ports increased by 14.5 percent in July, accelerating from the 8.4 percent increase in June.

Last month, the Covid-affected Shanghai port saw record-breaking container throughput.

Source: CNBC
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