Data shows continued decline in China’s exports in October

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China’s exports in October suffered a greater decline than expected, reflecting the impact of weak global demand and a slow domestic recovery. The country has been working to stimulate business activity after lifting its strict zero-Covid policy at the end of last year. Exports fell by 6.4% year-on-year, worse than the forecasted drop of 3.5% and continuing a downward trend since October of the previous year. The economic slowdown in the United States and Europe has contributed to this sluggish export growth. On the other hand, imports unexpectedly rose by 3.0%, indicating a potential recovery in domestic demand. However, analysts caution that this single positive news does not guarantee overall improvement in domestic demand and suggest looking at other indicators such as retail sales. China aims to achieve around 5% growth for 2023 and has implemented measures such as issuing sovereign bonds and targeted stimulus to support various sectors, particularly the struggling property market. The country experienced deflation in July, but mildly rebounded in August with the possibility of a future relapse.

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