China's trade growth plunged even more sharply than forecast in Julyin a new sign of global economic weakness.
Exports rose just 1 percent over a year earlier, down from June's 11.3 percentrate and below forecasts of about 5 percent, data showed Friday. Import growthfell to 4.7 percent from the previous month's 6.3 percent and also belowforecasts.
The figures follow disappointing data Thursday showing weak Chinese factoryproduction and retail sales in July. They add to signs the world'ssecond-largest economy is still struggling with its deepest downturn since the2008 global crisis despite repeated government stimulus efforts.
The latest signs of weakness have prompted calls for still more stimulusmeasures. Beijing has cut interest rates twice since the start of June and ispumping money into the economy through higher spending on building low-costhousing and other public works.
Economic growth fell to a three-year low of 7.6 percent in the quarter endingin June. The International Monetary Fund and private sector analysts havetrimmed their forecasts for the year but say growth should be about 8 percent —above the official 7.5 percent target but below the double-digit rates ofrecent years.
The slowdown is politically dangerous for the Communist Party because it raisesthe risk of job losses and unrest at a time when the ruling party is trying toenforce calm ahead of a handover of power this year to younger leaders. Exportindustries employ millions of workers and weak sales, coupled with highercosts, have led to a wave of bankruptcies.
China's trade growth has fallen steadily this year as global demand for itsexports cooled and efforts to boost domestic consumption have failed to gaintraction as fast as the government hoped.
In July, its global trade surplus narrowed by 20.3 percent from July 2011 to$25.1 billion but was this year's second biggest after June's $31.7 billion.
Exports were $176.9 billion while imports were $151.8 billion.
The trade surplus with the 27-nation European Union, China's biggest tradingpartner, narrowed by 37.9 percent to $10.8 billion, reflecting sluggishEuropean demand due to the continent's debt crisis. The surplus with the UnitedStates narrowed by 4.8 percent to $19.9 billion.
Beijing has set a goal of increasing total trade by 10 percent this year, atarget that looks increasingly hard to meet. Trade grew 9.2 percent for thefirst half of the year but the rate fell to 7.1 percent for the first sevenmonths.