China's exports climbed 7.0% in July from a year earlier, a slower pace of growth than in June and missing expectations, but imports rose 7.2%, customs data showed on Wednesday, August 7. That compares with forecasts for 9.7% growth in exports and a 3.5% increase in imports from a Reuters poll of economists. It also compares with June figures that showed an 8.6% expansion in exports and a 2.3% contraction in imports.

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.

UBS analysts pointed out that the export growth was partly due to a low base of comparison and more working days this July compared to last year. They warned, though, that the outlook isn’t rosy: China is still relying heavily on exports to support its struggling economy.