Chinese exports unexpectedly plummeted in May. For the first time in three months, exports calculated in US dollars fell by 7.5 percent compared to the same period last year, as reported by the customs administration in Beijing on Wednesday. Imports also fell for the second month in a row. The drop in imports was 4.5 percent – although the basis of comparison was low a year ago due to the corona restrictions.
The weak global demand, which is under pressure from high inflation, is considered to be the reason for the downturn in exports. Last March, exports rose surprisingly compared to the same month last year: At that time, foreign trade got a boost of 14.8 percent. Increasing trade with Russia and the elimination of the zero-Covid strategy had led to increased exports.
While China’s export machinery is now running much more slowly, the prospects for growth in the second largest economy, which actually started the year well, are also deteriorating. The Chinese government is planning “around five percent” growth for the year as a whole. Most recently, important leading economic indicators had already turned out worse than expected.