China’s exports fall 7.5% in May

BEIJING (AFP): China’s exports fell in May for the first time since February, state media reported Wednesday, breaking a two-month growth streak as a post-Covid rebound in the world’s second-largest economy faded.

Overseas shipments sank 7.5 percent on-year last month, a sharp drop from an increase of 8.5 percent in April, according to figures published by the official Xinhua news agency.

Meanwhile, imports fell 4.5 percent in May, according to Xinhua.

Forecasts in a survey by Bloomberg showed economists expected exports to drop 1.8 percent and imports to shrink 8.0 percent.

Rising global inflation, the threat of recession elsewhere and geopolitical tensions with the United States have weakened demand for Chinese products.

China’s exports grew in March and April, snapping a run of five straight declines, when production was disrupted by sweeping lockdowns and delays at ports when authorities enforced their strict zero-Covid policy.

But that recovery has lost steam, with the economy weighed down by a debt-laden property sector, limp consumer confidence and a global economic slowdown.