China Exports Rebound In May As Virus Controls Ease

China's exports grew at a double-digit pace in May, shattering expectations in an encouraging sign for the world's second biggest economy, as factories restarted and logistics snags eased after authorities relaxed some Covid curbs in Shanghai.

Imports also expanded for the first time in three months, providing welcome relief to Chinese policy makers as they try to chart an economic path out of the supply-side shock that has rocked global trade and financial markets in recent months.

Nonetheless, the outlook for China's exports, closely watched by investors as a gauge of world economic health, still points to risks from a months-long Ukraine war and rising raw material costs. Those same factors, along with rising interest rates in the United States and Europe, have raised concerns about a global recession.

Outbound shipments in May jumped 16.9 percent from a year earlier, the fastest growth since January this year, and more than double analysts' expectations for an 8.0 percent rise. Exports were up 3.9 percent in April.

Official data showed the daily container throughput at Shanghai port, which was running at severely reduced capacity in April, returned to 95.3 percent of the normal level in late May.

Economic activity cooled sharply in April as the country grappled with the worst Covid-19 outbreak since 2020. Stringent lockdown measures had clogged highways and ports, stranded workers and shut factories.

The State Council has called on local officials to revive supply chains, restore economic growth and rein in unemployment. Major automakers have been able to ramp up production in May and cargo handling capacity at ports and airports are returning closer to pre-lockdown level. (Reuters)