China’s exports grew sharply in May taking the country’s trade surplus to US$19.53 billion, up from US$1.68 billion in April, Dow Jones Newswires reported. Exports increased to US$131.76 billion, up 48.5% for the biggest gain in more than six years and the sixth straight month of growth. Analysts had been expecting something more similar to April’s 30.5% rise. Imports came in at US$112.23 billion, up 43.7% year-on-year but slower than the 49.7% growth seen in April. It is the seventh consecutive month of import growth. Economists warned that the boom may prove to be temporary, with Europe’s debt problems a potential threat to global trade. But it may still provide impetus – or at least increase external pressure – for a resumption in renminbi appreciation. Reuters reported yesterday that export growth was about 50%, prompting a 2.8% jump in the Shanghai Composite Index, which has been struggling recently. Copper prices also rebounded, with futures for July delivery gaining 2.5%, the most in two weeks.
Categories