Slowing Demand and Covid Lockdowns Cause Falling Exports from China
Exports from China fell significantly short of expectations in August as a result of shrinking global demand along with continuing Covid-19 disruptions. Reports showed that China’s exports rose by just 7.1% in comparison to 2021, which is almost half what was predicted and a drastic reduction from the 18% growth the month before.
Consumer Demand Falling Globally
Global demand for exports has shown signs of slowing much earlier than predicted, with recent shipping data suggesting that consumer demand from Europe and the United States is already falling, as demonstrated by the recent drop in shipping rates due to reduced demand. This is largely due to the increases in inflation and rising energy prices which are leading to changes in consumer habits and falling demand for goods as a global recession looms.
New Wave of Covid-19 Lockdowns
The Chinese economy has also been negatively impacted by ongoing widespread lockdowns as a result of the zero-Covid strategy in place in the country. Production has been hampered by the latest round of localised Covid-19 lockdowns in August, with manufacturing and export in the south-eastern Zhejiang province being severely affected by recent restrictions.
Additionally, like many countries worldwide China has also been a victim of climate change and extreme weather, experiencing record-breaking heatwaves and its most severe drought in six decades in the summer of 2022. This resulted in power shortages in many provinces, resulting in restricted water and electricity supplies to many manufacturing plants and factories.
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With over 35 years of experience, here at Hawley Logistics, we’re continuing to offer the same cost-effective and reliable logistical services to our customers that we always have.
With a strong focus on UK distribution along with robust and extensive global networks, Hawley Logistics offers delivery services throughout Europe and beyond. If you’re looking for global freight services, such as Air Freight, Sea Freight, Road Freight or UK haulage services, then don’t hesitate to get in touch today and find out how we can help your business deliver.
You can also call 01706 826322 or email [email protected]. Alternatively, you can request a callback and one of the Hawley Logistics team will be in touch shortly to discuss your requirements.
