The impact of the Covid-19 outbreak in China became increasingly apparent as exports and imports recorded slower growth in April.
According to customs data released on Monday, Chinese exports grew only 3.9% compared to a 14.7% increase recorded in March. This is the weakest rate ever recorded since June 2020.
Meanwhile, imports were unchanged in April after declining 0.1% in the previous month and also better than the expected decline of 3%.
The spread of coronavirus and the zero Covid policy by the government has affected China’s economy and threatened the global supply chain.
Any threat to trade is a concern as exports have become one of the strongest drivers for growth in the country.
The released figures show the impact of the Covid sanctions implemented in Shanghai, the world’s largest trade hub and port.
The previous administration of President Xi Jinping had promised more stimulus to meet the economic growth target of about 5.5% this year, but still insisted on maintaining Covid’s zero policy which was seen to hamper efforts to achieve their goal.
Meanwhile, global demand remained resilient in the past month, proving that China's move to put the country under sanctions has weakened its own economy rather than external demand.
