China’s Exports Fell Sharply in May
In May, Chinese exports fell more than expected. The reasons lie in the reduction of global demand.
The first quarter was better than expected, thanks in part to backorders that followed the slowdown caused by Covid restrictions, but then came a 7.5% drop in May. Meanwhile, however, industrial production has slowed due to rising interest rates and inflation that have reduced demand in Europe and the United States.
According to Reuters, exports fell 7.5% year-on-year from an expected 0.4% fall in May, while imports fell 4.5% year-on-year from an expected 8% drop. A further drop in demand is projected for Western economies in the second half of 2023.