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9 May 2022
China Export Growth Plunges to Two-Year Low as COVID Constraints Impact Factories
The Index Today
China’s export growth has decelerated to its lowest in two years with import figures remaining largely unchanged as the country’s restrictions in the wake of its present COVID-19 surge impacted productions at plants and crippled inland demand, adding to its mounting economic troubles.
According to Reuters, exports for the month of April inched up by 3.9%, which although slightly exceeded forecasts of 3.2%, still plummeted from March’s export growth of 14.7%, posting the lowest figures since June 2020.
Despite that, import figures remained mostly steady year-over-year, slightly recovering from its 0.1% slump in March, reported Reuters.
Zhixin Investment Research Institute’s senior analyst Chang-Ran contended, "The virus outbreaks in China led to huge difficulties in the production chains and the supply chains." He added, "Meanwhile, some countries in Southeast Asia have transitioned from recovery to production expansion, replacing Chinese exports to some extent."