Pandemic: the reasons that led China to increase trade despite the global downturn

0
10

China recorded strong growth in trade, while other large economies still struggle with the impact of the new coronavirus.

Chinese exports in September increased 9.9%, compared to the same period last year, according to official data – it was the fourth consecutive month of high. Imports, on the other hand, grew 13.2%, after a fall of 2.1% in August.

The increase in imports reduced China’s trade surplus (difference between exported and imported values), from US $ 59 billion (R $ 390 billion) in August to US $ 37 billion (R $ 245 billion). Even so, this figure represents a 6.6% growth compared to September 2019.

What led to China’s recovery?

China was the first country to report infection with the virus and reported its first cases of covid-19 at the end of last year.

The world’s second largest economy experienced a sharp decline in the first three months of 2020 amid strict isolation measures, before recovering in July.

Analysts say the recovery has since been driven by an increase in international demand for electronics, medical devices and textiles, including personal protective equipment.

However, they warn that part of that demand may start to fall.

At the same time, it was revealed in August that the Japanese economy suffered the biggest shrinkage on record, partly due to the drop in exports. The US economy had its biggest contraction in decades in July.

Chinese factory worker in plane factory in China
Photo caption, Rising international demand for electronics, medical devices and textiles spurred Chinese recovery

IMF revised its projections

Meanwhile, the International Monetary Fund (IMF) is forecasting a recession in the global economy a little less severe than it had pointed out in June.

But the IMF says the global economy is still in a deep recession and that the risk of a worse outcome than in its new forecast is “considerable”.

The global economy is expected to shrink 4.4%, down from 4.9% released by the IMF four months ago. In 2021, it is expected to recover and grow 5.2% – below the 5.4% expansion that the institution forecast in June.

The slightly less bleak assessment reflects the fact that the slowdowns in several developed economies in the second quarter of this year were less severe than the IMF had expected.

The return to growth in China was also stronger than expected.

The largest Chinese trading partner is the Association of Southeast Asian Nations, which includes Malaysia and Singapore, followed by the European Union and the United States.

Source: BBC

The post Pandemic: the reasons that led China to increase trade despite the global downturn appeared first in BizNews Brasil :: News of Mergers and Acquisitions of companies.

China recorded strong growth in trade, while other large economies still struggle with the impact of the new coronavirus.

Chinese exports in September increased 9.9%, compared to the same period last year, according to official data – it was the fourth consecutive month of high. Imports, on the other hand, grew 13.2%, after a fall of 2.1% in August.

The increase in imports reduced China’s trade surplus (difference between exported and imported values), from US $ 59 billion (R $ 390 billion) in August to US $ 37 billion (R $ 245 billion). Even so, this figure represents a 6.6% growth compared to September 2019.

What led to China’s recovery?

China was the first country to report infection with the virus and reported its first cases of covid-19 at the end of last year.

The world’s second largest economy experienced a sharp decline in the first three months of 2020 amid strict isolation measures, before recovering in July.

Analysts say the recovery has since been driven by an increase in international demand for electronics, medical devices and textiles, including personal protective equipment.

However, they warn that part of that demand may start to fall.

At the same time, it was revealed in August that the Japanese economy suffered the biggest shrinkage on record, partly due to the drop in exports. The US economy had its biggest contraction in decades in July.

Chinese factory worker in plane factory in China
Photo caption, Rising international demand for electronics, medical devices and textiles spurred Chinese recovery

IMF revised its projections

Meanwhile, the International Monetary Fund (IMF) is forecasting a recession in the global economy a little less severe than it had pointed out in June.

But the IMF says the global economy is still in a deep recession and that the risk of a worse outcome than in its new forecast is “considerable”.

The global economy is expected to shrink 4.4%, down from 4.9% released by the IMF four months ago. In 2021, it is expected to recover and grow 5.2% – below the 5.4% expansion that the institution forecast in June.

The slightly less bleak assessment reflects the fact that the slowdowns in several developed economies in the second quarter of this year were less severe than the IMF had expected.

The return to growth in China was also stronger than expected.

The largest Chinese trading partner is the Association of Southeast Asian Nations, which includes Malaysia and Singapore, followed by the European Union and the United States.

Source: BBC

The post Pandemic: the reasons that led China to increase trade despite the global downturn appeared first in BizNews Brasil :: News of Mergers and Acquisitions of companies.

You are curious? You will like this blog. Click here and check it out!

Leave a reply