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China’s strong trade growth extends in April

China’s exports accelerated in April and import growth hit a decade high, signaling that the impressive trade performance of the world’s second largest economy continues, boosted by increased demands for China’s goods on stalled factory production in many countries, mainly due to supply problems.

Exports rose by 32.3% in April, compared to 30.6% growth previous month and strongly beat forecast for 24.1% increase, with two main factors – the booming US economy and crisis in India, caused by new wave of coronavirus – contributing to strong acceleration in April.

Economists expect China’s export growth to remain elevated in the second half of this year, as these two factors are expected to continue to boost China’s manufacturing sector during 2021.

China’s imports grew by impressive 43.1%, making the fastest rise since January 2011, rising from 38.1% in March and extending above 42.5% forecast.

Analysts in China say that strong import growth could be sustained as China relaxes its fiscal policy support, but pointed that strong growth today was mainly due to the negative growth last year and that two-year average growth was only about 10% and expect country’s economic growth to slow from the record 18.3% expansion in the first quarter, due to disrupted supply chains that slows movements of goods and increases transportation costs.