China’s exports decline by 12.4% amid global headwinds

In June, China‘s exports fell the most in three years, falling a worse-than-expected 12.4% year-on-year. As indicates of stress from the struggling global economy, Chinese policymakers are facing growing pressure for stimulus measures.

Image source: Pexels

China’s exports dropped 12.4% in June, marking the worst monthly decline in three years. The global economy is showing signs of strain, and pressure is mounting on Chinese policymakers to implement stimulus measures.

Imports also declined more than expected, down 6.8%, customs data showed on Thursday. According to a Reuters poll of economists, imports would have decreased by 4.0% while exports would have decreased by 9.5%.

After picking up quickly in the first quarter, the pace of China’s post-pandemic recovery has slowed. According to economists’ predictions, the second-largest economy in the world will grow at a slower rate for a while, with an average of just 3% per year. That is less than half the rates typical over the past few decades, giving the impression that the economy is in a recession.

Lv Daliang, a spokesperson for the General Administration of Customs, blamed the poor export performance on “a weak global economic recovery, slowing global trade and investment, and rising unilateralism, protectionism, and geopolitics,” in comments at a news conference in Beijing.

Zhou Hao, economist at Guotai Junan International said, “Looking ahead, the headwinds facing the external sector remain strong, which calls for policy support for domestic demand.”