The volume of Chinese exports accelerated year-on-year in July. The impact of the relaxation of anti-epidemic measures has been felt. However, the outlook for the rest of the year is rather pessimistic, as a significant global economic slowdown is expected.
China’s dynamism is accelerating
China exported 18 percent more goods and services in July than in July last year. Compared to June, the year-on-year growth rate had thus accelerated. June’s export growth was only 17.9 percent. Experts, however, had expected July exports to rise by only 15 percent.
“Chinese exports surprised again. It is helping the Chinese economy through a difficult year when domestic demand remains relatively weak,” Zhiwei Zhang, chief economist at Pinpoint Asset Management, told Reuters.
Techno-economic recession
But soon, even foreign demand may not be able to get the Chinese economy on its feet. The United States, China’s largest trading partner, is already going through a technical recession, and the European Union economy is facing an energy crisis. European households will thus direct their spending mainly towards gas and electricity, which are becoming more expensive at record levels. This will not be good for Chinese exports, so it is possible that July’s great numbers will be the last for a while.
