Chinese exports fell again in August for the fourth straight month. Exports fell by 8.8 percent. The country is suffering from weak global demand.
China’s foreign trade contracted again in August. Exports fell for the fourth straight month, although the decline slowed. Exports fell 8.8 percent year-on-year, while imports were down 7.3 percent, customs officials said today.
The second largest economy in the world is currently struggling to develop more economic momentum after the Corona slump – which is also slowing down German exporters. In July, China’s exports were down 14.5 percent and imports down 12.4 percent. The August figures were also better than analysts had expected – they had expected a decline of nine percent compared to the previous year.
recession fears in Europe and the USA
Chinese exports are an enormously important pillar of the economy. However, since October last year, with the exception of the months of March and April, they have been falling. In July, exports fell to their lowest level since 2020, when the economy was hit hard by the Corona crisis.
Demand for Chinese products is currently weak. One reason is fears of recession in the USA and Europe and high inflation worldwide. In addition, more and more countries are striving to reduce their dependence on Chinese products and broaden their supply chains.
Height youth unemployment
China’s weakening economy has a lot to do with the Corona crisis. Last year, the strict measures to contain the pandemic had weighed heavily on the Chinese economy.
Beijing lifted the restrictions again in December, but the hoped-for upswing remained subdued, which is also due to weak domestic demand and the ailing real estate sector.
Youth unemployment in China hit a new record in June at over 20 percent. Since then, the Chinese authorities no longer identify them separately. The country’s economic situation also has a significant influence on the global economy.