China’s exports fell 7.5% in May from last year, while imports contracted 4.5% as slower global demand continues to weigh on trading business of the world’s second largest economy.
Exports data released by customs early Wednesday was way below forecast by a Reuters poll for a contraction of only 0.4%. Meanwhile, imports shrank smaller-than-expected from a forecast of 8.0%.
Coming out of a sharp surge earlier this year after lifting zero-Covid policy, economists are now downgrading China’s economic growth for this year as factory output continues to slow amid persistent weak global demand.
Economists expected the surge to continue in the second quarter of around 7.6%, but will come down to 5.0% and 6.0% in the third and fourth quarter, respectively.
