China’s exports contracted more than expected in June, affected by the shrinking global demand, which raises concerns about the world’s second-largest economy.

The value of China’s exports in dollars dropped significantly by 12.4% in June compared to the previous year, according to customs data released on Thursday. This decline is much larger than the anticipated 9.5% drop in a Reuters poll and the 7.5% decrease observed in May.

In addition, imports also experienced a decline of 6.8% in June compared to the previous year, which is worse than the projected 4% decline and the 4.5% annual decrease in May.

Lu Daliang, a spokesperson for China’s customs bureau, stated during a press conference on Thursday that China’s trade is still under significant pressure in the second half of the year. This pressure is partly due to high inflation in developed countries and geopolitical factors.

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