The economy of China has raised another red flag.
Reuters reported on Thursday, citing data from the General Administration of Customs, that exports fell 12.4% in June compared to the same month last year, while imports fell 6.8%.
According to the economists surveyed by Reuters, this is a significant error. They anticipated a decline in exports of 9.5% and imports of 4%.
According to Reuters' statistics, the decline in China's exports was the worst since the beginning of the COVID-19 pandemic over three years ago.
China's economy has struggled to recover from three years of intermittent COVID-19 setbacks, pointing to a disappointing performance for the world's second-largest economy this year.
According to Insider, the country may even be on the verge of deflation.
Other recent data from China has been disappointing, with official statistics indicating that manufacturing activity contracted for the third consecutive month in June.
In May, China's industrial output increased by 3.5% compared to the same month last year, a decrease from April's 5.6% increase. In the meantime, growth in retail sales slowed from 18.4% in April to 12.2% in May.
"The post-Covid recovery appears to have run its course, and an economic double dip is nearly confirmed," economists at Nomura wrote in a note dated June 16 that Insider reviewed.
China's faltering economy has a disproportionately negative impact on its youth. In May, the youth unemployment rate reached an all-time high of 20.8%, according to official statistics. This implies that one in five individuals between the ages of 16 and 24 are unemployed.
The Chinese economy expanded by 3% in 2022, and Beijing has set a GDP growth target of 5% for this year.
