CHINA’S exports unexpectedly fell 6.4 percent in April from a year earlier, while imports tumbled by a deeper-than-forecast 16.2 percent.

    The dismal trade performance raises the risk that second-quarter economic growth may dip below 7 percent for the first time since the depths of the global financial crisis, adding to official fears of job losses and growing levels of bad debt.

    “This is bad. I expect an interest rate cut this weekend,” said economist Tim Condon at ING in Singapore.

    “This is going to make 7 percent (GDP) growth hard to attain. It looks like the weakness in the first quarter wasn’t transitory. It’s persistent.”

    Imports have been weaker than exports, falling 16.2 percent in April from a year earlier, according to data released by the General Administration of Customs on Friday, highlighting tepid domestic demand as the world’s second-largest economy slows.

    In April, exports to the United States, China’s top export market, rose 3.1 percent from a year earlier while shipments to the European Union, the second largest market, dipped 10.4 percent, according to customs data.

    Buffeted by lukewarm foreign and domestic demand, China’s trade sector has wobbled in the past year, adding to pressure on the slowing economy and unsettling policymakers.

    Earlier last week, China’s trade minister said the devaluation of currencies by some countries has led to sharp gains in the yuan, hurting the competitiveness of Chinese exports.

    (SD-Agencies)