China’s export growth slowed more than expected in August due to a weakening global demand for Chinese goods and production disruptions caused by the country’s strict corona measures.
Imports also barely grew, indicating weak domestic demand.
China’s exports rose 7.1 percent last month, and the Chinese government reported based on customs figures. As a result, growth fell sharply compared to the 18 percent increase in July. Economists had previously expected a 13 percent growth in exports.
Imports grew by 0.3 percent, after rising 2.3 percent in July. An increase of 1.1 percent was expected here. As a result, the trade surplus of the world’s second-largest economy narrowed to $79.4 billion, from a record level of more than $101 billion in July.
A slowdown in exports is putting even more pressure on the Chinese economy, which is already suffering from strict corona measures and a crisis in the real estate market. Economists see new evidence in the export figures that the recovery is losing momentum and that the economy needs more support. The Chinese government has already promised to come up with more stimulus measures.
China’s trade data also follows weak industrial data from Europe, where factory activity has slowed. In addition, European countries are struggling with high inflation, among other things, which has made consumers more cautious with their spending.