China's exports posted an unexpected 14.8% surge in March, with outbound shipments rising significantly, despite analysts' predictions of a decline. According to customs data released on Thursday, imports fell by a smaller-than-expected 1.4%. This development comes as a surprise to many experts who participated in a Reuters poll and expected exports to fall by 7.0%, after experiencing a drop of 6.8% during the January-February period.
Furthermore, imports were forecasted to shrink at an annual rate of 5.0%. However, this prediction did not come true as China experienced only a slight decrease in its import activity. Meanwhile, South Korean exports also experienced difficulty and declined for the sixth consecutive time – down by 13.6% year-on-year.
China has set an ambitious growth target of approximately 5% for its gross domestic product (GDP) this year following severe pandemic control measures that led to one of the slowest economic growth rates seen within decades last year.
Additionally, custom data revealed on Thursday showed that China's exports grew by an impressive figure - up by 23.4% compared to last year when measured in yuan terms; meanwhile imports increased slightly at around 6.1%.
Economic expert Dr.James Chen commented on these surprising developments:
Dr.Chen further elaborated that "although it is still early days into the second quarter", it will be interesting "to see if this trend continues."
This unexpected spike serves as evidence showcasing how adaptive and robust China's economy can be despite facing significant setbacks due to stringent pandemic control measures implemented throughout most parts of last year.
As we move forward into Q2 and beyond with the global economy still grappling to overcome the pandemic's heavy impact, it remains to be seen how China's exports and imports will continue to perform. However, these March figures offer a glimmer of hope for robust economic recovery in the world's second-largest economy.