MNI BRIEF: China May Exports Slow, Down 7.5% Y/Y

China's exports slowed in May, falling 7.5% y/y for the first time in three months, driven by shrinking demand and the high-base effect, while imports registered a third monthly fall on falling commodity prices, data released by China Customs on Wednesday showed.

May's fall, which follows April's 8.5% y/y growth, beat the market consensus of a 0.9% y/y drop. Exports in the first five months of 2023 totaled USD1.4 trillion, or 0.3% over the same period last year. ASEAN countries - accounting for 14.6% of total exports - increased by 8.1% over the first five months while those to the EU, decreased 4.9% and to the US fell 15.1% y/y.

Imports registered a third monthly fall of 4.5% y/y decrease in May, narrowing from the previous 7.9% y/y drop and better than the market consensus of a 8.0% y/y drop. Imports in the first five months amounted to USD1.04 trillion. The trade surplus over the Jan-May period was USD359.48 billion, with May contributing $65.81 billion.