Chinese exports fell more than anticipated in March, according to official data released on Friday. The General Administration of Customs reported a 7.5 percent year-on-year decrease in exports, while imports also declined by 1.9 percent.
Economists surveyed by Bloomberg had expected a smaller drop in exports of just 1.9 percent, with imports projected to increase by 1 percent.
The chief economist at Pinpoint Asset Management, Zhiwei Zhang, attributed the significant decline to the fact that March this year had two fewer working days compared to March last year. This discrepancy often distorts the first-quarter trade figures due to Chinese holidays.
Zhang suggested that looking at Chinese trade data for the entire first quarter instead of just a monthly basis would provide a more accurate representation of external demand trends.
As China grapples with slowing global demand and domestic challenges such as a weakened property sector, high youth unemployment, and low consumption, the government is working to stabilize economic growth. Despite these obstacles, consumer prices managed to avoid deflation territory in March.
Chinese policymakers have set an annual GDP growth target of around 5 percent for this year, with quarterly growth figures expected to be released soon.
