The state news agency Xinhua reported that Chinese exports experienced a drop in May, putting an end to the upward trend that had started after the lifting of the zero COVID policy in the world’s second-largest economy. According to data published by Xinhua, exports declined by 7.5% compared to the same period last year, in sharp contrast to the 8.5% increase recorded in April.
In addition, imports also fell by 4.5% in May, according to the same report. Economists consulted by Bloomberg had forecast a 1.8% contraction in exports and an 8% contraction in imports.
Demand for Chinese products was weakened by global inflation, the threat of a global recession, and geopolitical tensions with the United States. These factors have affected international buyers’ confidence in Chinese products.
In the months of March and April, Chinese exports experienced an increase after five consecutive months of contraction. During that period, production was affected by confinements and logistical delays due to sanitary measures implemented to combat the spread of COVID-19.
This drop in exports reflects the challenges facing the Chinese economy amid an uncertain global outlook. The economic recovery remains fragile and subject to a number of external factors, suggesting that the path to full recovery could be bumpy in the coming months.