China’s Export Growth Plunges to 2-Year Low as Strict Covid Restrictions Hamper Factories

Source: National Bureau of Statistics of China

Strict zero-Covid restrictions pushed China’s export growth to its slowest pace in nearly two years in April, with recovery set to face numerous challenges. CSI 300 Index down -0.80%, CNYUSD down -0.68%

• China’s overall exports expanded better than anticipated by 3.9% last month from a year ago to $273.62 billion, compared with a growth of 14.7% in March.
• Imports remained fairly stable year on year, rebounding from a 0.1% fall in March and better than the 3.0% contraction estimated by a Reuters poll.
• The weak figures signal China’s trade sector is losing momentum as lockdowns across the nation hampered supply chains in major centers such as Shanghai, increasing risks of a deeper slowdown in the economy.
• China reported a trade surplus of $51.12 billion in the month, wider than an estimate of a $50.65 billion surplus. The economy posted a $47.38B surplus in March.