China's exports have taken a surprising downward turn, falling 7.5% in May year-on-year, much steeper than the predicted 0.4% drop. This decline marks the first since February, stirring worries over the growth trajectory of the world's second-largest economy. The slump was significant enough to lower export volumes below the levels seen at the beginning of the year. Notably, the value of China's exports to the U.S. dropped 15.1% in May compared to the same period last year.
On the other hand, imports for May decreased 4.5% from a year ago, which is less than the anticipated 8% dip. Despite this, there are signs of recovery in domestic demand, with import volumes in May reportedly reaching an 18-month high. This suggests that the recovery will likely continue in the upcoming quarters as reopening efforts continue to progress.
Explore the significant shift in global shipping as severe drought conditions in the Panama Canal compel dry bulk vessels, especially those carrying U.S. grain, to reroute through the Suez Canal.
