KSTR - China: Modest Recovery Of April Trade Data As Impact From NEVs And AI Race Remains Clear

2024-05-09 04:15:00 ET

Summary

• After a disappointing March, trade data recovered modestly in April.
• Auto exports continued to outperform, and imports were driven by demand from the AI race.
• Considering import demand could remain resilient, but exports face a higher level of risk in coming months, we expect a smaller contribution from trade to growth starting in the second quarter.

By Lynn Song

Recovery of trade continues to be modest

After the weak data in March, April trade data picked up slightly. Exports grew 1.5% YoY, while imports grew 8.4% YoY, leading to a trade balance of USD 72.35b....

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