Chinese exports spike 8.7% in August ’24

China’s exports surged 8.7 per cent year-on-year in August 2024, marking the fastest growth in nearly 18 months, as manufacturers rushed to fulfill orders ahead of anticipated tariffs from several trade partners.

The increase exceeded economists’ forecast of 6.5 per cent and July’s 7 per cent rise, according to customs data released on Tuesday. However, imports disappointed, rising just 0.5 per cent compared to a projected 2 per cent gain, and down from July’s 7.2 per cent increase, reflecting weak domestic demand.

Zhou Maohua, a macroeconomic researcher at China Everbright Bank, noted that while strong export performance boosts economic growth in Q3, the global economic and geopolitical environment remains challenging.

Economists caution that China risks undershooting its growth target if it becomes too reliant on exports, urging policymakers for more stimulus, potentially in Q4.

Attribution: Reuters

Subediting: M. S. Salama