Chinese exports plummet in March

A shock decline in Chinese exports added to concerns over the nation’s economic slowdown on Monday.

Export sales in China contracted by a staggering 15 per cent in March, much worse than analysts’ predictions for a 12 per cent rise. The surprise decline heightened fears that the nation’s stronger yuan was impacting international demand for Chinese goods and services.

Exports to the European Union dropped by 19.1 per cent in March, when compared to the same month last year, while exports to Japan plummeted by 24.8 per cent.

In addition to the decline in exports, the data highlighted lacklustre domestic demand for goods.

Imports shrank around 12.7 per cent in March from a year ago, the worst reading in nearly five years, but in line with estimates. On a volume basis, coal imports saw a massive contraction of 40 per cent in the January to March period.

The latest figures will exacerbate fears that economic growth in China is slowing to around seven per cent, its lowest in 25 years, which would also impact global demand.