China, the world’s second largest economy, posted further proof of a robust economy with strong export data released on Tuesday.
China’s exports increased at a solid rate in March as global demand ramps up amid progress in worldwide COVID-19 vaccination. Meanwhile, Chinese import growth rose to its highest level for four years.
On an annual basis, exports grew 49% in March. The figure was much higher than the 35.5% growth expected by analysts. However, March’s exports figure is still lower than the 60.6% growth recorded in February.
Despite the growth slowing from February, it must be noted that February saw record gains. Also, although lower in March, the export momentum remains strong, continuing a good run on soaring Chinese exports. Additionally, with vaccinations being rolled out globally, demand is expected to pick up even further.
Whilst exports grew, so did imports. On an annual basis, Imports grew 38.1%. March’s figure was a considerable leap February’s 22.2% growth and higher than the expected 23.3% growth forecasts.
Imports of Meat totaling 1.02 million tonnes in March marked the highest monthly volume since January 2020. Other imports inreases included soybeans iron ore, copper, and crude oil.
Chinese Growth Expected to Continue
Overall, China, which replaced the US as the world’s top investment location, recorded a trade surplus of $13.8 billion in March, Last months’ figures were lower than market forecasts for an increase to $52.05 billion and lower than February’s $37.88 billion increase.
The figures indicate a robust Chinese economy following a difficult 2020. China’s gross domestic product expanded 2.3% last year. This was the weakest growth in 44 years. However, China was the only major economy to register growth in 2020.
Whilst China is expected to benefit from the vaccine rollout in 2021, other economies will grow too. The World Trade Organization forecast that global trade would grow by 8% this year.
