China’s exports fell 12.4% year-on-year in June, while imports declined 6.8%, indicating manufacturers struggle to find consumers amid rising prices and interest rates.

A Reuters survey predicted a 9.5% export decline and 4.0% import decline.

China’s post-pandemic rebound has faltered, and analysts are reducing their forecasts for the remainder of the year as manufacturing output slows due to sluggish global demand.

Economic experts predict 3% yearly growth in the world’s second-largest economy, which is half the pace of prior decades and suggests a recession.

In June, consumer prices teetered on deflation, and producer prices plummeted at their highest pace in almost seven years.

South Korean shipments to China, a leading indicator for China’s imports, decreased 19.0% last month, indicating sluggish demand for semiconductors and electronic goods components.

Chinese Premier Li Qiang has been talking about boosting demand and invigorating markets, but few actual moves have been unveiled, leading to investors becoming anxious.

The administration has established a moderate GDP growth target of roughly 5% after missing the 2022 goal.