New data from China has revealed there was a huge boost in trade with the rest of the world during the month of August.
Figures show Chinese exports grew by 25.6% compared to the same month a year ago – trade thought to be worth around $294.3 billion.
Better than expected
Although last August’s trade figures were significantly impacted by Covid-19, the rise recorded last month was still better than experts had estimated (analysts polled by Reuters had forecast growth of 17%), with imports also rising by 33.1% over the same period.
In fact, for the first eight months of 2021, exports and imports have risen 34% and 35% respectively.
Growth factors
Solid shipping supply is thought to be behind the growth.
Speaking to Reuters.com, head of Asia economics at Oxford Economics Louis Kuijs said: “While near-term headwinds remain, supply constraints in China have eased and we think the global economic recovery will continue to underpin China’s exports later this year and in 2022.”
Shipments are reported to have grown across the board, with particular rises noted in electronics, furniture and recreational products.
Meng Xianglong, founder of Heji Trade & Credit Research Centre based in the port city of Ningbo, added: "I think it's expected that China's robust export growth will extend until the end of this year - around Christmas - or even into the beginning of the next year."
All-told China posted a trade surplus of $58.34 billion in August.
Mass Covid testing
This may well be its high point though, as according to the Economic Times, growth may now slow back down, thanks to a rise in Covid-19 cases. China appeared to have contained outbreaks of the Delta variant, but it introduced measures including mass testing as well as travel restrictions in August.
Supply bottlenecks and tighter credit conditions could also have a future bearing on activity.
German output growth
News that China was recording strong trading figures has also been shared by Germany, which has also revealed that industrial output there has grown – albeit by a smaller 1% rise month-on-month for July.
Data also revealed that production expectations for the car industry and in the engineering sector had also improved.
