Forex News

The growth of China's export sales in May exceeded expectations

China's exports in May reached double-digit growth, despite the ongoing trade dispute with the US, as shown by the data of the Customs General Administration on Friday. In May, exports increased by 12.6% compared to the same period last year, exceeding the expected growth of 11.1%. At the same time, imports sharply increased by 26 percent, exceeding expectations for an annual growth of 18.2 percent. As a result, the trade surplus in May was $ 24.92 billion, well below the expected level of $ 33.8 billion. Trade surplus of China's trade with the US increased to 24.6 billion US dollars. In RMB, exports increased by 3.2 percent, while imports increased by 15.6 percent in May. According to Julian Evans-Pritchard, an economist at Capital Economics, the increase in imports probably reflects the continued recovery of industrial activity after weakening control over pollution in winter and is unlikely to be sustainable. The economist added that even if the trade war is avoided, the growth of Chinese trade may appear to decline over the next year, as the global economy loses momentum, and the obstacles to domestic demand as a result of slower growth in lending intensify. The World Bank predicts that China's economy will grow by 6.5 percent in 2018 and by 6.3 percent next year. But the lender warned that high corporate debt and growing tensions in trade are the main risks for China's growth.