China: Merchandise exports slide in June
Merchandise exports sank 12.4% year-on-year in June (May: -7.5% year-on-year), worse than markets were expecting. Slowing external demand and trade frictions with the West were likely behind the decline. June’s outturn marked the worst decline since February 2020. Meanwhile, merchandise imports decreased 6.9% on an annual basis in June (May: -4.5% yoy), also undershooting market expectations and pointed to muted domestic demand.
As a result, the merchandise trade balance improved from the previous month, recording a USD 70.6 billion surplus in June (May 2023: USD 65.8 billion surplus; June 2022: USD 97.4 billion surplus). Lastly, the trend deteriorated, with the 12-month trailing merchandise trade balance recording a USD 928.0 billion surplus in June, compared to the USD 954.8 billion surplus in May.