In June 2023, China’s exports experienced a significant downturn of 12.4% year on year, surpassing the market prediction of a 9.5% fall. This slump, deeper than May’s 7.5% drop, represents the largest decline since February 2020, as elevated inflation in primary markets and geopolitical uncertainties curtailed external demand.
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Imports also fell for the fourth consecutive month, recording a 6.8% drop as a result of weakening domestic demand.
“We see little respite for China’s exports in the second half, as the U.S. is likely to enter a mild recession, while the Eurozone economy probably will remain weak,” Duncan Wrigley, chief China economist at Pantheon Macroeconomics, wrote in a note after the data release.
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China isn’t the only Asian export powerhouse reporting sinking overseas sales. Exports from Taiwan fell 23% in June compared with a year earlier, while Vietnamese exports were down 11%. Exports from South Korea were down 6%, according to official figures compiled by data provider CEIC.
