China’s exports likely swung back to contraction in March

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A Reuters poll conducted on Thursday suggests that China’s exports likely declined in March, following a period of better-than-expected growth in the first two months of the year. Economists anticipate a 2.3% year-on-year decrease in outbound shipments, reversing some of the 7.1% increase seen in January and February.

Despite the positive momentum in manufacturing, analysts expect China’s overall export growth to slow down significantly due to a higher comparison base from the previous year. The uneven recovery in the world’s second-largest economy is further underscored by concerns over a prolonged crisis in the property sector, which continues to impact growth prospects. Additionally, official data released on Thursday indicates that consumer inflation has cooled more than expected in March, reflecting sluggish demand conditions domestically.

Furthermore, Western apprehensions regarding China’s overcapacity in certain industries may lead to increased trade barriers for the country, potentially impacting its status as the world’s manufacturing hub.

Source: Reuters

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