Chinese exports boost global economy

Imports and Exports | | MIC Customs Solutions |

Increases in exports from China indicate the global economy is continuing to recover strongly from the impact of the Covid-19 pandemic.

Chinese exporters enjoyed strong performance last month to illustrate how the global economy continues to recover from the shocks of the last year, new figures have revealed.

Shipments of goods from the country climbed by 30.6 percent in dollar terms in March 2021 compared with the same period 12 months earlier, according to official customs data. In particular, exports to the US increased by 53.3 percent in March from a year earlier.

Imports to the Asian nation also beat expectations, increasing by 38.1 percent to leave an overall trade surplus of $13.8 billion for the month. Bloomberg reports this reflects strong domestic activity and rising commodity prices, both of which are indicators of China’s solid recovery from last year’s pandemic.

The news provider stated this latest data indicates export momentum remains strong following record gains in February. This is a sign that the global economic recovery is continuing at pace, which is helping boost demand for Chinese-made products.

In particular, China has been able to benefit from demand for medical equipment, as well as goods intended to make it easier for people to work from home - such as electronics and communication equipment.

Last month, the World Trade Organization raised its forecast for global trade growth for 2021 to eight percent. If this turns out to be accurate, it would be the fastest pace since 2010.

Peiqian Liu, an economist at Natwest Markets, told Bloomberg TV that exports outperforming the rest of the economy remains a theme for China's recovery. However, she added these figures are partly due to "a combination of global recovering demand, as well as China's role in filling up the global supply chain gaps".