China trade: ‘resilient’ April exports boosted by global recovery, but domestic demand still ‘key driver’ for growth
- China’s exports and imports returned to growth in April, with overseas shipments benefiting from a recovery in global demand
- But analysts said that domestic demand will still be the key driver for economic growth this year
China’s export growth beat expectations in April, with analysts pointing to “green shoots” in the recovery of global demand, which could help provide a solid base for Beijing to achieve its annual economic growth target.
But analysts also cautioned that uncertain external trade frictions mean sustaining the momentum in domestic demand remains “the key focus” to hitting the “around 5 per cent” gross domestic product growth goal for 2024.
Imports, meanwhile, also surged and rose by 8.4 per cent from a year earlier last month, compared to a 1.9 per cent fall in March.
“China’s exports still show resilience after excluding base factors, and the country’s economy is being supported by trade due to the rise of overseas economies, especially the US, ” said Larry Hu, chief China economist at Macquarie Capital.
We think domestic demand will still be the key driver for growth this year
Hu expects the favourable export performance to persist for at least the next six months, with growth in 2024 set to stay around 5 per cent.