The port of Lianyungang, in the Chinese province of Jiangsu, April 12, 2024 (AFP/STR)
Chinese exports fell more than expected in March, according to official figures released Friday, a new sign of the difficult recovery of the world’s second largest economy.
In March, sales of Chinese products and services intended for export fell by 7.5% year-on-year, according to dollar figures published by Chinese Customs.
Imports are also in the red, with a drop of 1.9% year-on-year.
These figures are worse than expected by analysts surveyed by the Bloomberg agency, who expected a drop in exports of 1.9% and an increase in imports of 1%.
The fall in exports is “largely due to the fact that there were two fewer working days in March this year, compared to March last year,” commented economist Zhiwei Zhang of Pinpoint Asset Management.
But over the entire quarter, the comparison is more flattering, he underlines, with a first quarter up 1.5% year-on-year, compared to a rate of -1.2% in the last quarter of 2023.
The threat of recession in Europe, combined with high inflation, has contributed to weakening international demand for Chinese products.
Geopolitical tensions with the United States and the desire of certain Western countries to reduce their dependence on China or to diversify their supply chains also explain these difficulties.
The much-hoped-for economic recovery at the end of 2022 following the Covid pandemic was brief and less robust than expected. It is now encountering an uncertain economic situation which is holding back household spending, while a real estate crisis and high youth unemployment are weighing on purchasing power.
China has set a target for economic growth of “around 5 percent” this year, one of the lowest rates in decades for the country.
© 2024 AFP
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