Forex News

China’s drop in exports eases in June as economies reopen

China’s drop in exports eases in June as economies reopen

The drop in China’s exports likely eased in June as major economies reopened their business activities after closures to contain the spread of the coronavirus pandemic, according to a poll by Reuters.

Exports from the world’s second-largest economy probably slumped 1.5 percent in June from a year ago, following a fall of 3.3 percent in May, while imports may have plunged 10 percent after a sharp drop of 16.7 percent in May.

Recent manufacturing reports suggested that the sector and economic activities in general are recovering after the lockdown measures imposed to deal with the rapid spread of the virus.

Several European economies and the United States reopened in mid-May, where the latest Covid-19 in the U.S. may have boosted demand on Chinese personal protective equipment.

Data due this week may show that China’s economy grew 2.2 percent in the second quarter on annual basis, after dropping 6.8 percent in the first three months of 2020.

As of 08:17 GMT, the offshore yuan was 0.03 percent down versus the U.S. dollar at 7.0011 per dollar, noting that the yuan hit its highest level since March at 6.9802 last week.

Share Article