China's exports rose at the fastest pace in nearly a year and a half

China's exports rose for the third consecutive month, eclipsing the prolonged decline in imports, as lockdowns eased in more trading partners. The data provides a further positive signal about the recovery of the world's largest economy. Exports increased by 9,5% in August, data from the General Administration of Customs showed on Monday (07.09.2020), which is the largest increase since March 2019. The figure also exceeded analysts' expectations, who had expected growth of 7,1% compared with 7,2% in July. The Imports, however, fell by 2,1% compared to market expectations of a 0,1% increase, after a 1,4% drop in July. The forced recovery in exports suggests a faster and more balanced recovery for the Chinese economy, which is rebounding from a record first-quarter slump thanks in large part to domestic stimulus measures. "China's exports continue to exceed expectations and grow significantly faster than world trade, thereby gaining global market share," said Louis Kuijs of Oxford Economics. "Import data disappointed, pointing to the need for caution in assessing China's need for domestic demand." A private survey of manufacturing activity last week showed that Chinese factories posted their first rise in new export orders this year in August as overseas demand gradually picks upThe rebound in business also led to an expansion in production, which posted its strongest growth in a decade. China's export performance, driven by record deliveries of medical supplies and strong demand for electronics, has not been as affected by the global slowdown as some analysts had feared. However, imports declined again, contrary to expectations, suggesting that domestic demand has weakened. China posted a trade surplus of $58,930 billion last month, compared with expectations in analyst surveys for a surplus of $50.500 billion and surpassing a surplus of $62,330 billion in July. Source: Reuters