China's Exports Surpass Expectations by a Wide Margin

Foreks - China's exports accelerated in October, exceeding expectations with a year-on-year increase of 12.7%. During the same period, imports also slowed more than anticipated. Economists had predicted a mere 5.2% increase in exports for October, while the growth was just 2.4% in September. Imports, which were expected to contract by 1.0% in October, actually decreased by 2.3%. A contraction of 0.3% was observed in September. The trade surplus exceeded expectations, reaching $95.72 billion compared to the anticipated $74.4 billion.

When looking at the data in yuan, exports increased by 11.2% in October, while imports decreased by 3.7%, resulting in a trade surplus of 679.1 billion yuan. In the first nine months, exports in yuan terms rose by 6.7%, with imports registering an increase of 3.2%. The nine-month trade surplus stood at 5.58 trillion yuan.

The momentum in exports has become a bright spot for an economy struggling with weak domestic demand and a debt crisis in the real estate market. However, analysts are optimistic that a $1.4 trillion fiscal package, expected to be approved by authorities this week, will stabilize the balance sheets of local governments and property developers, alleviating pressures on consumption.