China’s export growth softened and imports rose considerably in March, as disruptions in the Strait of Hormuz drove up transport costs and energy prices.
Exports rose 2.5 per cent year on year to US$321.03 billion in March, according to data released by China’s General Administration of Customs on Tuesday.
The reading fell short of the 4 per cent growth forecast by economists polled by the financial data provider Wind.
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Imports grew by 27.8 per cent to US$269.9 billion over the same period, surpassing the Wind poll’s 5.62 per cent growth projection, leading to a monthly trade surplus of US$51.1 billion.
The rise in imports extended the strong momentum seen in the first two months of the year, when inbound shipments climbed 19.8 per cent year on year, supported by improving domestic demand, increased commodity purchases and inventory restocking.
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Over the past month, conflict involving Iran, the United States and Israel led to the effective closure of the Strait of Hormuz – one of the world’s most critical maritime chokepoints – threatening global energy supplies and disrupting shipping routes.
