China's Exports Growth Unlikely to Sustain Amid Weak Global Macro Outlook -- Market Talk
According to DJ Newswires 13 Apr, - China's strong export growth in March came "as a surprise" to the market and is unlikely to sustain given the weak global macro outlook, says Zhiwei Zhang, an economist at Pinpoint Asset Management. The exports rebound in March was likely due to a low base last year amid the Covid lockdown and a release of pent-up production in December and January as the country was hit hard by the pandemic, he says. For the remainder of this year, China may still need to rely on its domestic demand with global demand waning, he says. Beijing may also consider more supportive monetary and fiscal policies in 2Q to boost growth, including a potential rate cut by the PBOC, he adds. (bingyan.wang@wsj.com). Sources: From DJ Newswires.
In terms of how a global logistics provider could benefit from this situation, there are a few potential opportunities. With China potentially relying more on domestic demand, a logistics provider could focus on providing transportation and distribution services within China to support this shift. Additionally, if Beijing implements more supportive monetary and fiscal policies, this could lead to increased investment and production within China, which could create opportunities for logistics providers to support the movement of goods within the country. Finally, if global demand does continue to wane, there may be opportunities for logistics providers to help businesses in China find new markets for their products and expand their customer base.
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