Global Courant
A cargo ship carrying containers is seen near the Yantian Port in Shenzhen, following the outbreak of the novel coronavirus (COVID-19), Guangdong province, China, May 17, 2020.
Martin Pollard | Reuters
BEIJING — China’s exports fell in May for the first time since February, customs data showed on Wednesday.
Exports fell 7.5% year-on-year to $283.5 billion, much worse than the 0.4% drop predicted by a Reuters poll.
The decline was so sharp that export volumes fell below year-earlier levels after factoring in seasonality and changes in export prices, Julian Evans-Pritchard, head of China Economics at Capital Economics, said in a note.
“This points to weak global demand for Chinese goods,” he said.
In April, Chinese exports slightly beat expectations with an annual growth of 8.5%.
However, the disappointing export figures for May indicate that the long-term trend is downward, said Hao Hong, chief economist at Grow Investment Group.
China will not be able to rely on trade to boost its economy for “at least another six months,” he said.
Imports stabilize
Imports for May fell 4.5% year-on-year to $217.69 billion – less than the 8% drop predicted by Reuters.
China’s monthly imports have fallen year on year since the end of last year.
Other analyzes of the data showed signs of recovery in domestic demand.
Capital Economics’ Evans-Pritchard estimated that import volumes for May hit an 18-month high after factoring in a lower comparison base and price changes.
He expects imports “to continue to recover in the coming quarters as the momentum from the reopening continues.”
A breakdown of China’s trade for May by country or category in US dollars was not immediately available.
China will release inflation figures on Friday.
– CNBC’s Jihye Lee contributed to this report.
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