Chinese October exports beat forecasts despite slowdown

China’s October exports grew slowly but exceeded projections. The growth was attributed to surging global demand, easing power crisis, and improving supply chains.

Based on the data, exports expanded 27.1% year-on-year in October, better than analysts’ forecasts of a 24.5% growth. However, it was lower than September’s reading of a 28.1% expansion.

Pinpoint Asset Management chief economist Zhiwei Zhang said strong exports would help assist the recovery of the slowing domestic economy, allowing more discretion in terms of monetary policy.

Zhiwei said the government can wait until the end of the year to loosen monetary and fiscal policies, thanks to favorable export figures.

Some recent supply restrictions, such as a power deficit caused by a coal scarcity, stricter pollution regulations, and high industrial demand, have begun easing in recent weeks.

Meanwhile, imports recorded a 20.6% year-on-year growth in October. It was higher than a 17.6% expansion touched in September but lower than a 25% growth prediction.