China’s Exports Drop More Than Expected, Adding to Global Economic Woes
China’s exports have plunged by 7.5% in May, far more than expected, adding to the woes of the global economy, which is already struggling with the impact of the COVID-19 pandemic. The drop in exports is the largest since February and is worse than the 3.5% decline forecast by economists.
The slump in exports is due to falling global demand caused by the economic slowdown caused by the pandemic. Analysts had anticipated a modest recovery in exports due to the gradual lifting of lockdown measures worldwide. However, these expectations have been dashed.
China’s exports to the United States fell by 9.9% year-on-year in May, while exports to the European Union dropped by 12.1%. Exports to Japan fell by 0.7%, while there was a 2.7% rise in exports to ASEAN countries.
The export slump has reignited concerns about China’s economic growth, which had started to rebound after the initial shock of the pandemic. China’s central bank has already taken steps to support the economy, including cutting interest rates and injecting liquidity into the financial system.
The International Monetary Fund (IMF) has warned that the global economy is facing the worst recession since the Great Depression, with the world’s output expected to shrink by 4.9% this year. The IMF has called for coordinated action by governments and central banks to combat the economic fallout from the pandemic.
As the pandemic continues to wreak havoc on the global economy, experts say that it is essential for countries to work together to stabilize the situation and ensure that the recovery is strong and sustainable.