China’s exports and imports in March saw significant declines, falling short of market expectations.
Customs data released on Friday revealed a sharp contraction in China’s exports and unexpected shrinkage in imports, presenting a formidable challenge for policymakers striving to fortify the nation’s fragile economic recovery. Shipments from China plummeted by 7.5 percent year-on-year in March, the largest drop since August last year, substantially lower than the anticipated 2.3 percent decline. Similarly, imports also declined by 1.9 percent year-on-year, contrasting with the expected 1.4 percent rise.
Analysts emphasise the necessity for more comprehensive and targeted policy stimulus to support China’s growth ambitions. Despite a 1.5 percent year-on-year rise in first-quarter exports, concerns persist over soft overseas demand and global economic uncertainties. The import figures reflect sluggish domestic demand conditions, signalling ongoing economic challenges. Additionally, China’s sovereign credit rating outlook was downgraded by Fitch to negative, citing risks to public finances amidst economic uncertainties.
While policymakers have rolled out support measures, including fiscal stimulus and plans to boost consumer demand, the economy’s uneven growth trajectory prompts calls for further intervention to ensure sustained recovery.
