China posted a record high trade surplus of more than $101 billion, Bloomberg reported. The trade surplus was driven upwards by rising exports, which climbed above the projected level of 14.1%.

According to China’s General Administration of Customs, the country’s trade surplus rose to $101.26 billion in July, an 81.5% increase from a year earlier. China’s trade surplus jumped to the highest level since 1987.

Customs statistics show the total import and export value increased by 11% and stood at $564.66 billion. Exports went up by 18% to $332.96 billion, while imports grew by 2% to $231.7 billion.

Rising exports, which exceeded the expected 14.1% increase in line with Bloomberg’s forecasts, were the main driver for the trade surplus, analysts say.

“China’s export growth surprised again on the upside. It continues to help China’s economy in a difficult year as domestic demand remains sluggish,” Zhiwei Zhang, chief economist at Pinpoint Asset Management said. Exports fuelled Chinese economic growth during the COVID-19 pandemic. However, they are unlikely to help the country’s economy now, as numerous countries face soaring inflation. 

The International Monetary Fund (IMF) expects Chinese economic growth to slow down amid new outbreaks of COVID-19 and the resulting lockdowns. The ripple effects of the conflict between Russia and Ukraine are also likely to weigh down on the Chinese economy. The IMF sees the country’s economy climb by 3.3% by the end of 2022, below its April’s forecast of 4.4%.

Emerging signs of a slowdown in the US, China, and the EU, the world’s three key economies, are threatening global economic growth. The IMF has slashed its global GDP growth outlook to 3.2% from 3.6% projected in April.