China’s trade shrinks unexpectedly as Covid curbs, suffers economic slowdown
China’s economy paints a struggling picture at the moment as the country’s imports and exports get contracted.
China is still recovering from the Covid situation at home and with the recession on the way, China’s policymakers need to think a lot about their plans.
The data of the economy seems bleak as the policy makers have to deal with pandemic’s aftermath pressures and counter measures.
They also have to deal with the rising inflation because of increase in interest rates worldwide.
According to the report, China’s outbound trade reduced by 0.3% as compared to the previous year.
The trade analyst’s expected a gain of more than 5% but it was below expectations which was only 4.3%. According to them, it was the worst performance since May 2020.
The analysts also warned the economy that this condition will persist for the time being especially for the exporters.
Economist Zichun Huang says, ‘looking forward, we think exports will fall further over the coming quarters… We think that aggressive financial tightening and the drag on real incomes from high inflation will push the global economy into a recession next year.’