7 Nov 2021
China October Exports Show Growth amid Holiday Season
The Index Today
New reports show China’s export growth was slower than usual in the month of October but still exceeded the initial forecasts due to the upcoming holiday season. Analysts however are pointing towards the declining demand where outbound shipment gains were slower than September at 27.1%.
Strong exports are an option to offset the weakening economy and reform policies. Zhiwei Zhang, chief economists at Pinpoint Asset Management said, “The government can afford to wait till the year end to loosen monetary and fiscal policies, now that exports provide a buffer to smooth the economic slowdown.”
Factory output has slowed down in the last month after supply chain disruptions combined with a massive power crunch took its toll. The Government is implementing new measures to boost factory output and ease pressures. Imports were up 20.6% in October but did not meet the forecasted gain of 25%.
On the other hand, crude oil imports were recorded at their lowest since 2018. China posted a trade surplus of $84.54 billion for last month. The economy grew by 4.9% for the quarter with a trade surplus with the U.S at $40.75 billion.
©Photo: REUTERS/Aly Song