Despite slowing in October, China’s export growth out-performed forecasts as increasing global demand for holiday seasons, an easing power crunch and the curtailing of supply chain issues have offset some of the pressures facing the world’s second-largest economy, reports Nikkei. Imports, on the other hand, missed analysts’ expectations, likely pointing to the overall weakness in domestic demand.
Outbound shipments jumped 27.1% year-on-year in October, slower than September’s 28.1% gain. Analysts had forecast growth would ease to 24.5%. Zhiwei Zhang, chief economist at Pinpoint Asset Management, said the strong exports would help to mitigate the weakening domestic economy, and offer the government with more room to manoeuvre economic policy.
“The government can afford to wait until the year end to loosen monetary and fiscal policies, now that exports provide a buffer to smooth the economic slowdown,” he said.
Recent data has pointed to a manufacturing slowdown. Factory activity shrank for a second month in October, an official survey showed, while growth in industrial output eased to the lowest since March 2020—the first wave of the pandemic.