Chinese exports sharply decreased in May, data from the customs administration showed on Wednesday, reflecting weak foreign demand amid tightened monetary policy and high inflation in many developed economies.
Exports fell by 7.5 percent compared to the same month last year, the steepest decline since January. In April, exports had surged by 8.5 percent.
Imports also decreased last month, down 4.5 percent compared to May last year, following a 7.9 percent drop in April.
The data indicate weaker demand for raw materials and a milder increase in coal imports due to reduced demand in the electricity and steel production sectors. In March, imports had reached their highest level in 15 months.
Copper imports fell by 4.6 percent.
The Chinese economy grew by 4.5 percent in the first quarter compared to the same period last year, thanks to the lifting of strict COVID-19 containment measures, but the statistical office warned of “insufficient” domestic demand and a “complex” international environment.
The service sector was the backbone of growth while industry faltered due to weaker demand in the U.S. and Europe amid rising interest rates as central banks attempt to curb high inflation.
The World Bank estimates that the Chinese economy will grow by 5.6 percent this year, which is 1.3 percentage points stronger than previously expected in January. In 2024, growth is expected to slow to 4.6 percent as weaker consumption outweighs a slight acceleration in exports.
