China reported better-than-expected trade date on Thursday, mitigating concerns of a slowdown in the Chinese economy.
Exports rose 15.5 percent in May, with imports up 22.1 percent for a trade balance of CNY 281.6 billion in Chinese yuan terms. In dollar terms, the surplus widened to $40.81 billion and exports rose 8.7 percent.
Thursday’s data also showed China’s foreign exchange reserves rose by more than expected in May, as tougher capital restrictions begin to take effect.
The figures come despite fears of a slowdown in the world’s second largest economy. However, the a spate of recent data has gone some way to mitigate concerns; last week the country announced that robust construction and infrastructure investment led to a rise in the Purchasing Managers’ Index (PMI) figure for May, rising to 51.2. This was unchanged from April’s figure and higher than analysts predictions of 51.0.
On the whole, “China’s economy is changing into a trend of stabilization from a momentary spike and drop,” Zhang Liqun, an analyst with the China Logisticas Information Centre, said in a statement.
However, many analysts warn that China’s growth is likely to slow gradually in coming quarters.
“Today’s trade data surprised on the upside, but has not changed our overall view that real GDP growth likely peaked in the first quarter,” investment bank Nomura said in a report.