Chinese industrial output grew by 6.7% year-on-year in April, up from a 4.5% expansion in March signalling a further strengthening in the country’s manufacturing sector. However, weaker retail sales and bleak property data suggested that overall growth momentum remained weak.
An IMF mission to Germany concluded that the German economy had begun to recover following major shocks. As real wages continue to rise, higher private consumption is expected to drive a modest and gradual recovery in 2024, with real GDP growing by around 0.2% supported also by external demand. GDP growth is expected to accelerate to between 1.0% and 1.5% during 2025-26.
The Panama Canal Authority announced an increase in the permitted number of daily transits through the Panama Canal from 24 to 31 vessels following the onset of the country’s rainy season. Daily transits are also due to rise to 32 from the start of June.
US President Biden has announced steep tariff increases on an array of imported Chinese products that was justified on the grounds that China was stealing US intellectual property. The proposal to raise tariffs on certain Chinese steel and aluminium products from 7.5% to 25% made on the campaign trail in April will now take effect this year.
The China Coal Transportation and Distribution Association said that the country’s hydropower generation recorded a sharp increase from late April which is likely to continue, leading to lower-than-expected demand for coal at power plants. Hydropower in the last third of April was up 42.9% year-on-year and is expected to maintain double-digit growth. Water levels and reserves at the Three Gorges Dam, the world’s largest hydropower plant, were up 47.8% year-on-year as of mid-May.