Chinese economy in decline

China has reported an unexpected fall in its exports and imports, adding to concerns of a slowdown in its economy.

Exports fell 3.1% in June from a year earlier, indicating weak global demand for Chinese goods. Most analysts had expected a 4% increase in shipments.

Imports fell 0.7% from a year ago, showing a subdued domestic demand.

China, the world's second-largest economy, has been keen to rebalance its economy, after a decline in global demand hurt its export-led growth.

China's economy grew at an annual pace of 7.7% in the January to March quarter, compared with 7.9% in the previous three months.

Analysts say second-quarter GDP figures, due to be released on Monday, are likely to show a further slowdown, as demand in key export markets in the US and Europe remains weak.

At the same time, policymakers have found it tough to boost domestic consumption enough to offset a decline in foreign sales.

veya_victaous wrote:Also the main factor reducing Chinese growth is the Collapses of Western markets.