Reports showing the expanding effect of quarantines in China also constitute key points in terms of global growth. With the quarantines tightening the supply chains, the increase in exports is well limited. While there was no change in imports due to stagnant domestic demand and quarantine cuts, the country’s exports in dollar terms increased by 3.9%, in line with expectations. Exports may come to a standstill after April due to quarantine in Shanghai and other parts of the country.
Exports have slowed sharply from the 14.6% increase in March. Disruptions in production and deliveries negatively affect shipments. Production and delivery components in April’s official PMI data fell to the worst levels since the nationwide lockdown in early 2020. New export orders in the PMI report also dropped to the lowest level since May 2020, indicating a bad outlook for the near term. Foreign demand is also decreasing from high levels. The import index on the official PMI indicator had recorded its lowest reading since February 2020. Since the signs of global slowdown and supply chain constraints pose a risk on the axis of foreign demand, the slowdown may also shift to the scope of imports.
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Hibya Haber Ajansı