Business & Economy

China’s trade surplus rockets as imports slump in May

(Update: Adds more details throughout)

Beijing, Jun 7 (efe-epa).- China’s foreign exchange reserves climbed to record highs in May as imports and commodity prices plunged.

China’s foreign exchange reserves grew to $ 3.1017 trillion by the end of May, from $ 3.0915 trillion in late April, the central bank showed on Sunday.

Analysts quoted by Trading Economics considered the rise “unexpected”.

“This was the largest figure since February, despite a weakening in yuan amid concerns over growing tensions between Washington and Beijing,” analysts added.

On the other hand, the value of gold reserves increased to USD 108.29 billion at the end of May from USD 106.67 billion in April.

China’s foreign trade dropped 4.9 percent year-on-year in May, albeit less than expected.

Exports grew 1.4 percent year-on-year in May, above analysts’ forecasts, but imports plunged 12.7 percent leaving a trade surplus of $62.93 billion, according to the State Administration of Foreign Exchange (SAFE).

During April, Chinese foreign trade had declined 0.7 percent year-on-year resulting in an increase in Chinese international commercial activity.

Hong Kong daily South China Morning Post partially attributed the decline in imports (for the second consecutive month) to a drop in oil prices.

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