(MENAFN) China's State Information Center foresees exports shrinking nearly 8 percent in the second quarter due to the underperforming global economy, rising production costs and a stronger Chinese currency.
In accordance, the deterioration in imports is likely to narrow to about 10 percent as global commodity prices begin to rebound, plus it seems that the nation's aggregate supply outweighs demand.
However, the State Information Center singled out the service sector as a bright spot; hence with consumer spending on leisure, the service sector should expand at around 7.5 percent in April-June period.
While consumer demand is stabilizing, slower income growth and the lackluster job market cast a long shadow, let alone that excessive industrial capacity and inadequate private investment still pose challenges to the economy.
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