BOTH CHINA’S import and its export growth came in lower than expected in April, raising doubts about the strength of the economic rebound in the world’s second largest economy.

Export growth fell from 8.9 per cent year-on-year in March to 4.9 per cent last month, lower than expected. However, analysts were not too disheartened as the figures came on the back of a strong couple of months.

Exports to the EU grew a mere 0.3 per cent from January to April.

However, analysts were more concerned about import data, where growth fell from March’s 5.3 per cent year-on-year to 0.3 per cent. That left China with a trade surplus of €14.2 billion in April, compared with a forecast of €6.6 billion and March’s €4.13 billion.

“April’s weakness was not a one-off. The level of imports has been falling for a while,” said Mark Williams, chief Asia economist at Capital Economics.

The slowdown in headline imports was magnified by a sharp fall in commodities prices in the past year.

Lombard Street Research was very bearish on the data, pointing out how recession in Europe and sluggish recovery in the US was badly affecting the Chinese economy. “The short-term prospects for Chinese exports are little better than the stagnation of the past year, and the 12-24 month prospects as bad or worse. It’s a far cry from the good old days,” said LSR’s Charles Dumas in a research note.

Today sees a raft of data that will give greater clues to the direction of the Chinese economy, including inflation, producer prices, industrial output, fixed asset investment and retail sales.

“The apparent weakness of domestic demand is the most disheartening aspect,” said Williams after March data had suggested a revival.