China's export growth exceeded forecasts in July, but a sharp increase in imports led to a more-than-expected decline in trade surplus, the latest figures from the General Administration of Customs revealed Thursday.
Exports increased 5.1 percent year-on-year in July, recovering from a 3.1 percent fall in the previous month. Economists were looking for a 2 percent growth.
Likewise, imports climbed 10.9 percent annually in July, after a 0.7 percent slump in June. The outcome was much better than forecast of 1 percent increase.
Meanwhile, the trade surplus fell to $17.82 billion in July from $27.12 billion in June. Economists expected a modest decline to $26.9 billion.
China's foreign trade has been hit by the weakening global demand particularly from Europe, one of its largest export markets. The government is spearheading a process of rebalancing the economy to make growth more consumption-driven, moving away from investment and export-driven growth model.
China recently took measures to support small businesses and to maintain financial stability, alongside a slew of economic reforms.
In July, the International Monetary Fund urged the authorities to expedite transition to a new growth model, which is more consumption-based and inclusive as downside risks to growth have increased.
The IMF forecasts the economy to grow 7.8 percent this year and by 7.7 percent in 2014, lower than its projections in April.
In the second quarter, China's economic growth moderated to 7.5 percent from 7.7 percent in the first three months of the year.
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