Data published by the General Administration of Customs showed that in April China's exports rebounded more than expected on a lower base of comparison, while import growth also exceeded economists' forecasts. But continued exports strength risks aggravating concerns abroad about a flood of Chinese goods in foreign markets.
According to the report, exports increased by 1.5% per annum after falling by 7.5% per annum in March. Economists had expected an increase of 1% per annum. Meanwhile, the volume of imports jumped by 8.4% per annum, offsetting the March decrease by 1.9% per annum. Consensus estimates suggested an increase of 5.4% per annum. Against the background of such changes, the trade surplus increased to $72.35 billion from $58.55 billion in March. Economists had forecast growth to $76.7 billion.
In Q1, the Chinese economy grew faster than expected, but March data indicated that GDP growth may slow down again. The crisis in the real estate market also shows no signs of abating, spurring calls for more policy stimulus. Meanwhile, last month, the Fitch rating agency downgraded the outlook on China's sovereign credit rating to negative, citing risks to public finances due to slowing economic growth and an increase in government debt. China has set an economic growth target for 2024 at about 5%, which many analysts say will not be easy to achieve without additional stimulus measures.