China has seen growth in its import and exports for April after contracting in the previous month, which is good news for the country’s economy. Reuters reports that the data suggests a flurry of policy support measures over the past several months may be helping to stabilise fragile investor and consumer confidence. Latest figures show that shipments from China grew 1.5% year-on-year last month by value.
They fell 7.5% in March, which marked the first contraction since November. In the first quarter, both imports and exports rose 1.5% year-on-year, buoyed by better-than-expected trade data over the January-February period.
But the weak March figures prompted concerns that momentum could be faltering again. Ratings agency Fitch cut its outlook on China’s sovereign credit rating to negative last month, citing risks to public finances as growth slows and government debt rises.
The Politburo of the Communist Party, the party’s top decision-making body, said last month it would step up support for the economy with prudent monetary policy and proactive fiscal policies. Beijing has set an economic growth target for 2024 of around 5%, which many analysts say will be a challenge to achieve without more stimulus. However, the coal industry appears to be helping.
Shipments of coal into China were 45.25 million metric tons last month, up 11% year-on-year as power generators boosted their buying ahead of peak season for air conditioning consumption. Iron ore imports also ticked up 1.1% last month, as lower prices in March encouraged some buyers to place orders for the key steelmaking ingredient betting demand and prices will pick up later in the year.
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