China’s exports show 8.7 percent growth yr/yr last month, imports remain slow

(MENAFN) In August, China’s exports showed robust growth, rising by 8.7 percent year-on-year to reach USD308.6 billion, as reported by the General Administration of Customs of China. This strong performance exceeded expectations and marked an increase from the previous month’s figures. On the other hand, imports experienced only a modest rise of 0.5 percent, totaling USD217.6 billion. This disparity between export and import growth resulted in a significant foreign trade surplus of USD91 billion for August.

The continued strength in China’s exports is attributed to global inflationary pressures, which have enhanced the country’s competitiveness in international markets. Additionally, the low base effect from the same period last year has amplified the year-on-year growth in exports. Despite this, the growth in imports has remained subdued, reflecting ongoing challenges in domestic demand and consumer confidence that have impacted import volumes.

The monthly data reveals fluctuations in China’s trade performance throughout the year. Earlier in 2024, exports saw a 7.1 percent increase in the first two months, followed by a 7.5 percent decline in March and a 7 percent rise in July. This variability underscores the dynamic nature of China’s trade environment and the impact of global and domestic economic conditions on its performance.

In contrast to the strong export growth, import growth has been less impressive. The 0.5 percent increase in August represents a slowdown from July’s 7.2 percent rise and follows a 2.3 percent decline in June. This trend indicates a cooling in import activity, suggesting that while exports benefit from favorable external conditions, domestic factors are restraining import growth.

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