China's exports, imports fall as weak global demand keeps its economy under pressure

China’s exports and imports declined again in August, data showed Thursday, as the world’s second-largest economy is grappling with a combination of subdued global demand and a broader economic slowdown. According to the customs authority, overseas shipments contracted by 8.8 per cent on a year-on-year basis, a notable improvement from July’s 14.5 per cent decline, while imports experienced a 7.3 per cent decrease, compared to a 12.4 per cent drop in the preceding month. Economists, as surveyed by Bloomberg News, had expected both figures to drop by nine per cent. China’s exports, which have traditionally been a significant driver of its economic growth, have been steadily declining since October, except for a brief rebound in March and April. In July, they reached their lowest level since 2020 when the global demand was severely impacted by the Covid-19 pandemic. The looming threat of a recession in the United States and Europe, coupled with elevated global inflation, has further contributed to the weakening international appetite for Chinese goods throughout this year. Recent trade statistics highlight the waning momentum of China’s post-Covid rebound, which had initially experienced a short-lived surge following the removal of growth-inhibiting zero-Covid measures at the close of 2022. Further contributing to the prevailing pessimism this week is a report indicating that China’s services sector expanded in the previous month at a notably slower rate than initially anticipated. The turmoil in the property sector continues unabated, characterized by prominent developers failing to complete housing projects, a situation that has triggered protests and prompted homebuyers to boycott mortgage payments. As a result of months of discouraging economic data, authorities are facing mounting pressure to implement fresh stimulus measures. With inputs from agencies.