Improving Key Indicators Signal Positive Outlook for China’s Economy

A report from Xinhua on May. 11th, 2024:

China’s economy is expected to maintain its recovery momentum despite multiple challenges, as evidenced by the favorable performance of numerous key indicators, experts said.

A prime example is the most recent release of China’s foreign trade data. Despite the challenges, such as the high base effect and currency depreciation pressure, China’s total goods imports and exports expanded 2.2 percent year on year in U.S. dollar terms in the first four months of this year, data from the General Administration of Customs (GAC) shows.

In yuan terms, China’s total goods imports and exports expanded 5.7 percent year on year during the period, stronger than the 5 percent recorded in the first quarter (Q1) and reaching a new high in the same period in history, according to the GAC.

Structurally, China’s export portfolio has demonstrated strength in the sectors of ships, electric vehicles and construction machinery, with growth rates of 108.4 percent, 28.3 percent and 16.2 percent, respectively.

This stellar foreign trade data aligns with the overall positive trend seen across various data. In Q1, the country’s foreign trade cargo throughput at major ports climbed 9.5 percent from the same period last year, while the number of twenty-foot equivalent units (TEUs) of containers handled by these ports jumped 10 percent year on year.

Zhang Xiaotao, dean of the school of international economics and trade at the Central University of Finance and Economics, said the vigorous performance in foreign trade signified the continuous effectiveness of the supportive macroeconomic policy mix.

The quantitative and qualitative growth in foreign trade will bolster confidence and provide impetus for economic growth, Zhang added.