China’s trade dynamics in June spun a story of steeper than expected declines on both the import and export front. With the largest export drop since February 2020.
June’s figures reveal a -12.4% yoy slump in China’s exports, far exceeding anticipated -9.5% yoy decline and outpacing May’s -7.5% yoy drop. Imports followed a similar pattern, decreasing by -6.8% yoy, steeper fall than projected 4.0% and more significant contraction than May’s -4.5% yoyshrinkage.
Despite these challenges, China’s trade surplus managed to grow from USD 68.1B to USD 70.62B. However, this increase didn’t quite hit expectation of a USD 74.8B surplus.
Lu Daliang, a spokesperson for China’s customs bureau, cautioned that the nation’s trade is expected to face substantial pressure in the second half of the year. During a press conference, Lu attributed these pressures to high inflation in developed countries and geopolitical issues.
