China’s goods exports and imports both returned to growth in June, beating market expectations, official data showed Tuesday, as external demand for medical supplies kept rising and the country’s economy continued to recover from the Covid-19 pandemic, reported Caixin.
Exports grew 0.5% year-on-year in dollar terms last month, reversing a 3.3% drop in May, according to data from the General Administration of Customs. The reading beat the median forecast for a 3% decline in a Caixin survey of economists.
Imports rose 2.7% year-on-year in June, up from a 16.7% slump the previous month and marking the first increase this year. The reading outpaced the median forecast for a 10% drop in the Caixin survey.
“When China resumed most of its production in late March, other major economies were deeply mired (in) the pandemic with broad-based restrictive lockdowns, providing it with substantial space to ramp up exports of medical products, such as masks and ventilators,” economists at Nomura International (Hong Kong) Ltd. said in a note. They added that as production in other major economies was hit hard by the pandemic, massive government stimulus created a large gap between demand and supply which was filled by Chinese exports.