CHINA’S exports grew at a robust pace in March in yet another boost to the nation’s economic recovery as global demand picks up amid progress in worldwide COVID-19 vaccination, while import growth surged to the highest in four years.

The data suggest the world’s second-largest economy will continue to gather momentum as it emerges from the COVID-19-led slump in early 2020, though a lagging consumer rebound, a resurgence in COVID-19 cases in many countries and Sino-U.S. tensions have raised risks for the outlook.

Exports in dollar terms soared 30.6 percent in March from a year earlier, but at a slower pace from a record 154.9 percent growth in February. The analysts polled have forecast a 35.5 percent jump in shipments.

“Strong foreign demand is likely to be sustained throughout the second quarter as the global economy further recovers,” said Nie Wen, an economist at Hwabao Trust.

“But with the acceleration in global vaccination efforts, industrial sectors in other countries are gradually restarting. It remains to be seen that if China’s stellar export growth will begin to slide.”

Despite sporadic COVID-19 cases in China's border cities, authorities have been able to largely contain the virus in a boost to the lagging consumer recovery.

China managed to largely bring the COVID-19 pandemic under control much earlier than many countries thanks to stringent anti-virus curbs and lockdowns at the initial phase of the outbreak last year.

Asian stocks markets were broadly positive after the data, with strong imports giving investors confidence that domestic demand is improving as part of the recovery from the pandemic.

The data showed total Chinese imports jumped 38.1 percent year on year last month, the fastest pace since February 2017 on high commodity prices, beating a 23.3 percent forecast and compared with 17.3 percent growth in February.

Meat imports of 1.02 million tons in March marked the highest monthly volume since at least January 2020, while imports for soybeans iron ore, copper and crude oil also rose.

China posted a trade surplus of US$13.8 billion last month, versus analysts expectations for the surplus to rise to US$52.05 billion from US$37.88 billion in February.

Official and private manufacturing surveys in China pointed to robust growth, with export orders returning to growth amid improving foreign demand.

However, many analysts believe exports could lose some momentum in the short term and the advantages of orders transferred from other countries due to coronavirus-related disruptions will begin to abate.

Li Kuiwen, customs spokesman, said that overall trade growth in the second quarter could show the pace slowing due to a higher base comparison in the year-ago period when a jump in pent-up demand boosted the headline figures.

The resurgent COVID-19 infections abroad and constraints in global trade have left some companies grappling with prolonged delivery time frames and surging prices of raw materials.

Makers of cars and electronic devices from televisions to smartphones are sounding alarm bells about a global shortage of chips, which is causing manufacturing delays as consumer demand bounces back from the coronavirus crisis.

(SD-Agencies)