China's robust exports, surging imports boost economic recovery; outlook challenging

• China's exports rose sharply in March while imports growth surged to the highest in four years in yet another boost to the nation's economic recovery, signaling improving global demand amid progress in worldwide COVID-19 vaccination.
• The data suggests the world's second-largest economy will continue to gather momentum as it emerges from the COVID-19-led slump in early 2020, though a lagging consumer rebound, a resurgence in COVID-19 cases in many countries and Sino-U.S. tensions have raised risks for the outlook.
• Exports in dollar terms soared 30.6% in March from a year earlier, but at a slower pace from a record 154.9% growth in February. The analysts polled by Reuters have forecast a 35.5% jump in shipments.
• "Strong foreign demand is likely to be sustained throughout the second quarter as the global economy further recovers," said Nie Wen, an economist at Hwabao Trust. "But with the acceleration in global vaccination efforts, industrial sectors in other countries are gradually restarting. It remains to be seen that if China's stellar export growth will begin to slide."

(Source: Reuters)