Shipments from China grew 1.5% year-on-year last month by value, customs data showed on Thursday, in line with the increase forecast in a Reuters poll of economists. They fell 7.5% in March, which marked the first contraction since November.
MIDF noted that China exports rebounded in Apr-24, expanding +1.5%yoy and surpassing market expectations of +1.0%yoy growth. Exports to the US and EU fell slower at -2.8%yoy and -3.6%yoy, respectively. Shipments to ASEAN were more encouraging, surging to +8.1%yoy, ending 2 months of contraction. In particular, this was contributed by stronger exports to Malaysia (covering over 16% of exports to ASEAN), increasing by +2.8%yoy and marking the 2nd month of expansion. Imports also returned to growth at +8.4%yoy, also higher than market consensus of +5.4%yoy. This was attributable to rebound in imports from ASEAN with imports from Malaysia expanding by +13.3%yoy.
Against the previous month, China’s exports growth moderated to +4.6%mom while imports declined -0.5%mom. China’s improved trade performance with ASEAN suggests improvement in regional trade. Increased China’s purchases from Malaysia also indicate Malaysia’s exports likely register stronger growth in Apr-24. On that note, MIDF said it reiterates that the projection that the external recovery will support Malaysia’s economy to grow faster at +4.7% this year.
