By Gina Lee

Investing.com – Chinese export growth . The growth was due to an increase in global demand before Christmas and a strengthening of supply chains which were badly affected by COVID-19.

The data released Sunday revealed that the country grew 27.1% in year-on-year. Forecasts by Investing.com predicted a 24-5% rise and a 28.1% increase reported in September.

However, domestic weakness weighed on and grew by 20.6% over the past year. Investing.com forecasts had expected a 25 percent growth while a 17.6% increase was observed in the month prior.

Pinpoint Asset Management chief economist Zhiwei Zhiwei said that exports with high levels of quality would mitigate the country’s weakening economy, and provide more economic policy flexibility for the government.

He stated that the government could afford to delay the year’s end to relax monetary and fiscal policy, as exports act as a buffer against the slowdown.

Recent supply restrictions, such as a power crisis that was triggered by an insufficient amount of coal and stricter emissions standards have begun to ease over the past few weeks, thanks to government intervention.

Premier Li Keqiang declared last week that government plans to take steps to help the industrial sector, as the economy is facing renewed downward pressures.

Meanwhile, the data also showed that the for October was $84.54 billion, above the $65.55 billion figure in forecasts prepared by Investing.com and September’s $66.76 billion surplus.