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China records first growth in imports since Corona-economic-world pandemic began

China’s imports increased in June for the first time since the economy was paralyzed by the crisis of the economy’s outbreak of the Corona Virus this year, as demand for primary commodities rose on the back of government stimulus while exports rose, in a sign that recovery is gaining momentum.
China has provided strong incentives to support domestic demand, even though the increase in coronavirus infections worldwide has raised questions about the strength of recovery in global economic activity.
And customs data revealed today, Tuesday, that China’s imports increased by 2.7% in June, on an annual basis, contrary to market expectations of a ten percent decline. Imports decreased 16.7% in the previous month.
Exports also increased unexpectedly and increased by 0.5%, indicating that global demand has begun to recover again with the start of easing strict public isolation measures to combat the outbreak of the virus, which pushed the global economy to the largest decline in nearly ninety years. Analysts had expected exports to decline 1.5% after falling 3.3% in May.
“The apparent improvement in China’s imports is an indication of an accelerated economic recovery for the country, which is mainly driven by large increases in investment in sectors such as real estate and infrastructure,” said Bo Yang Zhuhuo, an analyst with consulting firm Dokker Frontier.
Trade data revealed that iron ore imports actually jumped to the highest level in 33 months in June, supported by increased shipments from mining companies and strong demand. Crude oil imports also hit an all-time high as Chinese refiners snapped deals, benefiting from the oil price crash.
China’s imports from the United States rose 11.3% in June, compared to a double-digit decline following the outbreak of the Coruna virus.
China’s trade surplus with the United States expanded to 29.41 billion dollars in June, compared to 27.89 billion in May.
The Chinese economy is recovering from a sharp contraction of 6.8% in the first quarter of this year, but this recovery is still fragile, due to the cooling global demand due to social restrictions and the continued increase in cases of corona. Chinese consumption also faltered amid layoffs and fears of a second pandemic.
China’s trade surplus in June was 46.42 billion dollars, compared to 62.93 billion dollars in May.

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