China’s exports declined by 2.8% year-on-year to RMB1.17 trillion in May, up from a contraction of 6.4% in April, according to data published by the General Administration of Customs.
Imports fell by sharply by 18.1% to RMB803 billion in May, compared with a decline of 16.1% in the prior month, reflecting that the domestic demand remains lukewarm.
The country registered another huge monthly trade surplus at RMB366.8 billion, versus RMB212 billion in the previous month.
"Our study shows that while the imports dropped sharply in the first few months of this year, it could be largely attributed to the price and exchange rate effect. In real term, imports dropped by about 5% to 7% in the first five months of this year, compared with a 17.3% drop in the value term," says s research report by ANZ.
The bank expects both consumption and investment to pick up in the second and third quarter on fast implementation of fiscal policy and much eased monetary policy.