Jump in Chinese exports shows strong recovery continues
08 November, 2020
Exports from China grew at the quickest pace in 19 months in October, while imports also rose, official data showed on Saturday, as the world's second-largest economy continued to recuperate after being hit hard by the coronavirus crisis earlier this season.
Exports in October rose 11.4 % from a year earlier, beating analysts' expectations of a 9.3 per cent increase and quickening from a good 9.9 % increase in September.
The surge in exports pushed the trade surplus for October up to $58.44bn billion, weighed against the poll's forecast for a $46bn surplus and a $37bn surplus in September.
China's trade surplus with the United States widened to $31.37bn in October, from $30.75bn in September.
China's exports have stayed largely resilient amid the Covid-19 global pandemic, as strong demand for medical supplies and reduced manufacturing capacity elsewhere worked in the country's favour.
"Exports growth quickened further and drastically exceeded expectations, indicating a relatively strong momentum," said Liu Xuezhi, an analyst at Bank of Communications in Shanghai.
China's exports could stay strong in the rest of 2020 as domestic organizations resume production faster than global rivals and sell more Covid-19 related goods such as for example face masks, Mr Liu said.
However, some analysts said exports could come under pressure in the coming months, as major European economies such as for example France, Germany and the United Kingdom move back to lockdown as another wave of coronavirus cases gathers strength.
Factory activity accelerated at the fastest pace in nearly a decade in October, a private survey showed, although the state survey pointed to some slowdown in the expansion. Export orders expanded.
Imports rose 4.7 % year-on-year in October, slower than September's 13.2 per cent growth, and underperforming expectations in a Reuters poll for a 9.5 % increase, but still marking a second straight month of growth.
Chinese airlines are shunning some deliveries of Airbus aircraft, citing fears of coronavirus infection for their staff in the most recent tussle over efforts to keep delayed deliveries on the right track regardless of the pandemic, industry sources said.
Analysts said the solid trade performance could provide a boost to China's broader financial recovery, which includes gained steam after suffering from a deep slump earlier this season.
China's economy grew 4.9 % in the third-quarter from a year earlier, but growth could slow to just over 2 % this season - the weakest in over three decades but nonetheless much stronger than other major economies.
"China has a better recovery from the pandemic and includes a comparative advantage, so it has gained a more substantial market," said Zhou Hao, an economist at Commerzbank in Singapore.
"Of course, this advantage is also temporary and could last before end of the entire year."
Source: www.thenationalnews.com
TAG(s):