China’s Export Growth in July at Fastest Rate in 7 Months, Imports Falling

China’s exports increased at the fastest pace in seven months in July, while imports declined, painting a mixed picture of the economy as it recovers from a slowdown sparked by the pandemic.

Exports rose 7.2% from a year ago in July, the fastest pace since December, customs data showed, missing analyst expectations for a 0.2% drop and accelerating from a 0.5% increase in June.

In contrast, imports turned into contraction, while market expectations were to increase by 1%. Imports bucked the trend in the previous month.

China’s trade surplus was $ 62.33 billion, compared to the $ 42 billion forecasts in the survey and a $ 46.42 billion surplus in June.

China’s economy is gradually emerging from an unprecedented contraction that it hit in the first quarter of the year, but there are doubts about the sustainability of the momentum in light of the growing cases of COVID-9 around the world and its impact on demand.

The performance of Chinese exports was supported by record shipments of medical supplies and strong demand for electronic products and was not affected as badly by the global slowdown as some analysts had feared.

Imports of industrial raw materials maintained their strength, with record imports of iron and copper ore, as well as a jump in crude oil.