China: Export growth slows in April
May 8, 2017
Exports rose 8.0% annually in April, less than half the 16.4% rise in March. The print undershot the 11.3% rise that market analysts had expected. While April’s data corroborates a softening growth momentum in Q2, exports are expected to hold up well throughout the rest of the year due to resilient global demand.
Meanwhile, imports rose 11.9% annually in April, which came in below March’s 20.3% expansion and the 18.0% rise markets had expected. April’s print mostly reflected lower prices for raw materials in the month.
The trade surplus narrowed from USD 39.2 billion in April 2016 to USD 38.0 billion in April 2017. The 12-month moving sum of the trade surplus decreased from March’s USD 469 billion to USD 468 billion in April, which marked the lowest value since January 2015.
China and the United States announced a set of trade deals on 11 May, which are expected to smooth relations between the two global powers. The new trade deal will promote market access for U.S. beef, natural gas and financial service companies in China. In exchange, China will be able to export poultry to the U.S. Nevertheless, analysts warn that many key trade issues such as steel and aluminum were left untouched.