An aerial view shows cars for export at a port in Yantai, Shandong province, China May 3, 2023. China Daily via Reuters
China‘s export slump is likely to have accelerated in June due to low overseas demand, according to a Reuters report.
Sluggish overseas economies struggling with inflation and rising interest rates are buying up fewer goods from Chinese factories, the report added.
Outbound shipments from the world’s second-largest economy were projected to have fallen 9.5% year-on-year, following a drop of 7.5% in May, according to the median forecast of 30 economists in the poll finalised on Wednesday, the report said.
Notably, this is the worst decline since January, when China‘s supply chains were grappling with a wave of coronavirus infections unleashed by the end of harsh pandemic-related restrictions.
Chinese factory activity has been shrinking in recent months and policymakers are now reckoning with the prospect of prolonged slower growth in the world’s second-largest economy around just 3% annually, according to economists’ forecasts. That is less than half the rates typical throughout recent decades and creates the feel of an economy in recession.
With inputs from Reuters
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