Wednesday, January 19

China’s trade grew 26% in November despite uncertainty about the new omicron variant

The volume of trade in China During the past month of November it reached a value of $ 579,340 million, which represents an increase of 12.2% compared to October and of 26.1% year-on-year, despite the uncertainty about the impact of the new omicron variant in demand and trade flows.

According to data published by the China Customs Administration, the Asian giant’s exports reached $ 325,530 million, with a year-on-year growth of 22%, below the increase of 27.1% in October, while in monthly figures the increase was 8.4%.

On the other hand, Chinese imports totaled $ 253,810 million in November, 17.6% above the October figure and accelerating its expansion to 31.7% year-on-year from 20.6% the previous month.

“Exports and imports beat expectations last month thanks to higher demand and alleviating shortages of semiconductors,” said Capital Economics senior analyst for China, Julian Evans-Pritchard, for whom, in the short term, the omicron variant is likely to support export demand.

In this sense, and despite the fact that there is still no complete understanding of the variant, the expert pointed out that concerns about its spread are already causing travel restrictions and greater social distancing worldwide, so “it is likely that omicron will stop the change in consumption patterns from goods to services, keeping the external demand for China’s exports strong in the short term ”.

“Its impact later on is still uncertain. Meanwhile, we doubt that the latest spike in imports is the beginning of a sustained increase, as real estate construction appears to weaken further, ”he added.

As a consequence of the greater increase in purchases of China, the trade surplus in the penultimate month of the year reached $ 71,710 million, compared to the positive balance of $ 84,540 million in October.

Between January and November, China trade it grew by 31.3%, to $ 5.47 billion, including a 31.1% increase in exports, to $ 3.02 billion, and a 31.4% increase in imports, to $ 2.44 billion.