China's exports grew at their slowest pace in three months in July

Outbound shipments climbed 7.0% in July from the year earlier, customs data on Wednesday showed, a slower pace of growth than June's 8.6% rise and missing forecasts of a 9.7% increase.

Imports rose at a robust 7.2% rate, reversing a 2.3% decline in June and marking the strongest performance in three months. It also beat analysts' expectations of a 3.5% rise.

The world's second-largest economy has struggled to gain momentum despite government efforts to stimulate domestic demand following the pandemic. A protracted property slump and fears about job security have dragged heavily on consumer confidence.

China's economy grew 4.7% in the second quarter, below expectations, keeping alive calls for policymakers to roll out more support to hit the government's full-year growth target of around 5%.

Chinese leaders pledged last week that the stimulus measures will be directed at consumers and the country will make "countercyclical adjustments" during the rest of 2024.

The government last month announced that about 150 billion yuan ($20.88 billion) of the 1 trillion yuan China is raising through special debt issuance this year will subsidise replacements of old appliances, cars and other consumer goods.

The measure deviated from the usual playbook of boosting investment to support the economy and fuelled expectations for more stimulus that targets household demand.

China's trade surplus narrowed to $84.65 billion in July, compared with the $99 billion forecast and $99.05 billion recorded in June. The United States has repeatedly highlighted the surplus as evidence of trade advantages enjoyed by Chinese firms.

Source: Reuters