China's exports continued to increase in May, albeit at a slower pace than the previous month, driven by strong global demand as more economies around the world opened. Imports rose, supported by higher commodity prices.
Exports grew nearly 28% in dollar terms in May from a year earlier, the customs department said Monday, weaker than expectations and below April's pace, but still well above historical growth rates. Imports rose 51.1%, the fastest pace since March 2010, leaving a trade surplus of $45.5 billion for the month.
External demand for Chinese goods remains strong with other economies Great Britain for me we I'm out of lockdown for a month. Exports to emerging markets such as India and Southeast Asia, which have rebounded due to the Covid-19 outbreak, have also increased. Exports of South Korea, the world's trade leader, rose to Most of them since 1988 In May, a sign that the global recovery is strengthening.
"It's still a pretty good number," said Jonathan Kavina, chief market analyst at Informa Global Markets, in an interview with Bloomberg TV. We know that global demand is still recovering and this trend is likely to continue from the end of Q2 to Q3 as major developed economies open.”
Exports to the US were moderate, although they continued to grow at a healthy pace of around 21% growth, while shipments to the EU slowed to nearly 13%. Purchases of Indian companies jumped more than 100% for the second month in a row.
There is also a category shift that is driving export growth. Sales of household appliances and lighting grew, while there was a more than 41% decline in textiles and textile goods, which include masks and protective clothing. This change 'appears to be consistent with' Economist Landscape at Goldman Sachs wrote in a note that increased exports of non-Covid-related products offset weak exports of Covid-related products as global vaccinations continued.
Gao Feng, spokesman for the Ministry of Commerce, said China's exports will maintain good momentum in the first half of the year. He said last week.
The increase in commodity prices and a lower base last year continued to boost imports. The strong economic recovery from the pandemic has boosted demand for the staple and also helped drive up its prices. The value of imports of iron ore and concentrate rose 85.5% in the first five months of the year, but only 6% in terms of volume. The value of imports of copper ore and concentrates rose 54.5%, but volume was only 6.4%.
This record price increases costs for the company. The government has recently stepped up its campaign to tame prices and contain inflationary pressures.
Data may be distorted by fewer working days in May due to the five-day Labor Day holiday. He was also there upheaval In one of China's busiest Chinese ports Starting late May due to the Covid-19 outbreak, which could affect the data.
“Exports have slightly surprised the decline, perhaps as COVID cases in Guangdong province slowed in rotation at the ports of Shenzhen and Guangzhou,” Zhang Chuyue, chief economist at Pinpoint Asset Management, wrote. “Supply chain disruption risks are increasing” and export prices and shipping costs are likely to increase further as Guangdong plays a key role in global supply chains.
China's factory gate prices likely rose 8.5% in May from a year earlier, according to the median forecast before the data was released on Wednesday. This would be the fastest increase since 2008, and would also help increase the cost of exports.