China's May Exports Up 27.9% YoY 'Global Demand Recovery Continues'

China Trade Balance Trend [Source= Bloomberg]

[Asia Economy Reporter Byunghee Park] Bloomberg reported on the 7th (local time) that China's export volume in May continued its sharp rise.

According to the General Administration of Customs of China, China's export volume in May (in dollar terms) recorded $263.9 billion, a 27.9% increase compared to the same month last year. Bloomberg noted that although this was below the analyst forecast of 32.1% based on its own aggregation, it still represented a high import growth rate, confirming the global economic recovery trend. It explained that demand for Chinese products is increasing as the US and European countries lift COVID-19 lockdown measures.

Jonathan Cavenaugh, Senior Investment Strategist at Infomer Global Markets, said, "Global demand is recovering, and as major advanced countries ease lockdown measures, the recovery trend will continue through the third quarter."

China's import volume in May was $218.4 billion, a sharp 51.1% increase compared to the same month last year. Reflecting the impact of rising raw material prices, this was the highest growth rate since March 2010. The import growth rate also fell short of Bloomberg's forecast of 53.5%.

By May, iron ore imports increased by 6% in volume but surged 85.5% in value. Copper imports also rose 6.4% in volume but increased 54.5% in value.

China's trade surplus in May recorded $45.5 billion, slightly higher than April's $42.9 billion. Both April and May exports were recorded at $263.9 billion, but imports slightly decreased from $221.1 billion in April, resulting in a slightly larger surplus. However, this was below Bloomberg's forecast of $50.8 billion.