China’s exports grew for a second consecutive month in May, offering a glimmer of hope for the country’s economic recovery. However, concerns remain about the sustainability of this growth due to weak domestic demand.
While export figures are exceeding expectations, imports are growing at a slower pace, highlighting a struggling domestic market. This weakness is further emphasized by a decline in imports of commodities like crude oil and soybeans.
The ongoing property crisis is seen as a major drag on China’s economy, dampening consumer confidence and business activity. Despite the positive export data, China’s stock market fell as news emerged of potential US restrictions on Chinese battery firms.
Analysts expect the government to implement additional stimulus measures to bolster domestic demand and support the overall economic recovery. The International Monetary Fund has recently revised its growth forecast for China upwards, but remains cautious due to the ongoing property sector issues.
Source: Reuters