BEIJING: Chinese imports fell for a seventh straight month in May while exports also sank, according to official data on Monday (Jun 8), as the world's second biggest economy shows protracted weakness even in the face of government easing measures.
The disappointing figures also come as leaders try to transform the economy from
one where growth is driven by consumer spending rather than government investment and exports.
Imports slumped 17.6 percent year-on-year to US$131.26 billion, the General Administration of Customs said in a statement. The decline was much sharper than the median forecast of a 10 percent fall in a Bloomberg News poll of economists and followed April's 16.2 percent drop.
"The May trade data ... suggest both external and domestic demand remain weak," said Julian Evans-Pritchard, an analyst with research firm Capital Economics, in a note.
Exports dropped for the third consecutive month, falling 2.5 percent to US$190.75 billion, Customs said, although that was better than the median estimate of a four percent fall in the Bloomberg survey.
The sharp decrease in imports meant the trade surplus expanded 65.6 percent year on-year to US$59.49 billion, according to the data.
In yuan terms, imports fell 18.1 percent, exports decreased 2.8 percent and the trade surplus expanded 65.0 percent.
The figures provided further evidence that frailty in the Chinese economy, a key driver of world growth, has extended into the current quarter despite intensified government stimulus measures.
Gross domestic product (GDP) grew 7.4 percent in 2014, the lowest rate in nearly a quarter of a century, while the new year has shown few signs of a reversal in the slowing trend. GDP expanded 7.0 percent in January-March, the worst quarterly result in six years and weaker than final three months of 2014.
