Chinese trade could face double-digit decline after pandemic

Imports and Exports | | MIC Customs Solutions |

The impact of coronavirus on trade in China could be severe, experts are predicting.

Chinese imports and exports could decline significantly as the effect of the coronavirus pandemic and subsequent shutdown of manufacturing takes its toll.

This is according to a Reuters poll of economists, which suggested shipments coming from China are likely to fall by 15.7 per cent in April when compared to a year earlier.

It would be worse than the 6.6 per cent contraction seen in March and on top of a 17.2 per cent reduction in exports for the first two months of 2020.

Meanwhile, the poll predicted imports would decline by 11.2 per cent year-on-year, marking the sharpest decline since July 2016.

A note from Nomura analysts said: "We think Beijing will most likely substantially lower its 2020 GDP growth target due to the severe blow from COVID-19 on China's and the global economy."

More than half of China's processing trade is reliant on importing materials from other nations, something that has been severely disrupted as the global pandemic continues to spread.