China’s imports plummet, export growth slows as recovery fades.

As Chinese imports plummeted to a large extent, 7.9% when 0.2% was forecast, raising concerns about the country’s ability to boost the global economy. There is a trade surplus of $90 billion for the month of April.

This drop in imports into the country represents a problem for the economies that were waiting for China to end the COVID Zero policy to boost their exports. The recovery in imports has been due to the same consumer spending, leaving aside investment in infrastructure and real estate, thus reducing the demand for raw materials such as crude oil, iron ore and copper, since imports of these products fell with respect to the month of March.

Economists warn that the increase in prices and interest rates in the world, the high levels of inventories due to COVID, and the war conflicts will slow down the world demand of consumers, therefore, it can be expected that there will not be a large growth in import demand in China.

“Technology imports contracted due to the global slowdown in demand for electronics and the relocation of supply chains, and imports were quite disappointing, which would add concerns to the Chinese demand recovery story,” he stressed. Credit Agricole CIB Chief China Economist Xiaojia Zhi.

She raised potential options, including supporting the industry’s labor market through subsidies for electric vehicles, increasing the speed of deliveries for infrastructure projects or other means.

Bloomerg (Mayo 9, 2023) China Imports Plunge, Export Growth Slows as Recovery Wanes. gCaptain