China’s Exports Grow 7% Falling Short of Forecasts Amid Economic Challenges

China's Exports Grow 7% Falling Short of Forecasts Amid Economic Challenges

According to China’s General Administration of Customs, overseas shipments expanded by 7.0 percent in the last month.

That compares with the 8.6 percent increase recorded the month before and short of the 9.5 percent forecast in a Bloomberg survey of analysts.

Beijing is seeking to achieve annual national growth of around five percent this year, a target considered ambitious by many observers.

Exports have historically served as an important engine for economic activity in China.

And they have now expanded for four consecutive months, following a year-on-year decline of 7.5 percent in March.

However, imports jumped 7.2 percent in July, more than twice as much as expected after a surprise drop in June.

Since China’s abrupt scrapping of stringent COVID-19 control measures in late 2022, an anticipated return to economic vitality has proven elusive.

The economy is battling several headwinds including a prolonged debt crisis in the vast property sector, high youth unemployment, and sluggish consumer spending.

The uncertain economic situation has weighed on Chinese purchases of goods and services from abroad.

China maintains a trade surplus, which shrank to $84.65 billion in July from $99.05 billion in June.