China’s exports and imports unexpectedly contracted in October, the first simultaneous slump since May 2020
Beijing - , as a perfect storm of
Outbound shipments in October shrank 0.3% from a year earlier, a sharp turnaround from a 5.7% gain in September, official data showed on Monday, and well below analysts’ expectations for a 4.3% increase. It was the worst performance since May 2020. The yuan on Monday eased 0.4% from a more than one-week high against the dollar reached in the previous session, as the weak trade data and Beijing’s vow to continue with its strict zero-Covid strategy hurt sentiment.
"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," said Zichun Huang, economist at Capital Economics. Feeble October factory and trade figures suggested the economy is struggling to get out of the mire in the last quarter of 2022, after it reported a faster-than-anticipated rebound in the third quarter.
Tepid domestic demand, partly weighed down by fresh Covid-19 curbs and lockdowns in October, hurt importers.
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