China’s exports to remain elevated in year-over-year terms | Daily News

China’s exports to remain elevated in year-over-year terms

China’s foreign trade surplus likely widened in April, after narrowing to US$13.8 billion in March. According to Moody’s Analytics Asia Pacific Economic Preview China’s exports will remain elevated in year-over-year terms due to low base effects as the pandemic wreaked havoc on foreign demand.

But beyond that,pent-up foreign demand is expected to ease over the year, particularly for audio and video equipment and parts, lighting devices, and furniture. Factories have reopened in many major economies, and their domestic manufacturing is picking up speed, squeezing demand on China’s exports. The domestic market will play a more important role in digesting and supporting production this year, backing import growth and likely keeping the trade balance relatively narrow.The surge in China’s imports in March was largely due to rising prices. The import volume of refined oil and pharmaceutical products slipped compared with December, but their import value soared by more than 35%.