China beats estimate to record robust export growth in Oct
BEIJING: China’s export growth beat expectations in October as foreign demand for its goods continued to surge, despite global supply chain disruptions.
Exports grew 27.1% in dollar terms in October from a year earlier to $300.2 billion, data from the General Administration of Customs showed Sunday. That was the 13th straight month of double digit growth, and exceeded economists’ expectations of a 22.8% gain. Import growth quickened to 20.6% year-on-year, leaving a trade surplus of $84.54 billion.
China’s trade growth has remained well above pre-pandemic levels all year. Total exports this year through October have already surpassed all of 2020.
That strength is providing support for a Chinese economy that’s losing steam due to weak domestic demand caused by a real estate downturn, electricity shortages that have slowed industrial output, and cautious consumer spending worsened by sporadic outbreaks of the coronavirus.
China’s strong export momentum will last at least for the next few months, according to a Bloomberg Economics analysis. But if consumers in developed economies continue to shift away from goods toward services consumption, and countries in South and Southeast Asia resume factory production following pandemic-related shutdowns, demand for Chinese products could slow gradually.
Global trade in goods has been running at record levels as economies around the world recovered from virus-induced lockdowns in 2020. That had put strain on supply chains in many countries due to shortages of containers and ships as well as capacity at ports, including drivers who deliver goods to retailers.
The outlook for the supply chain crisis may be improving, as foretold by falling shipping costs.