China’s exports surge in July due to demand for medical masks & other lockdown goods

Data from China’s General Administration of Customs showed on Friday the country’s dollar-denominated exports rose 7.2 percent last month, well ahead of analysts’ expectations. Imports fell 1.4 percent from a year ago.

The export growth was powered by rising overseas demand for electronics, medical supplies and other goods used in coronavirus lockdowns around the world.

The surge came after a better-than-expected result in June, when exports returned to growth, rising 0.5 percent compared to a year ago. Imports rose 2.7 percent in the same period.

China’s trade balance for July was $62.33 billion, up from $46.42 billion in the prior month.

“Much of the recent resilience of exports has been due to shipments of masks, medical products and work-from-home equipment,” said China economist at Capital Economics, Martin Rasmussen. 

READ MORE: China shows ‘indication of accelerating economic recovery’ as exports & imports grow for first time since Covid-19 pandemic

He added that the nation’s stimulus-led recovery looks set to continue in the coming months, which would also support a rebound in imports. Foreign demand is likely to continue to recover as disruptions related to the pandemic ease. The economist, however, noted that the upside to China’s exports may be limited as demand for products related to the pandemic is likely to be temporary.

For more stories on economy & finance visit RT’s business section

Source link