China39;s Dec exports worst since Feb 2020
Imports tumble by smaller margin amid lacklustre demand
Domestic demand should slowly recover after zeroCOVID scrapped
Export outlook gloomy in 2023, major threat to China39;s growth
2022 trade surplus hits record high

BEIJING, Jan 13 Reuters China39;s exports shrank sharply in December as global demand cooled, highlighting risks to the country39;s economic recovery this year, but a more modest decline in imports reinforced views that domestic demand will slowly recover in coming months.

While imports are expected to ride a wave of pentup demand after China dropped its tough COVID19 measures in December, its exports are seen weakening well into the new year as the global economy teeters on the brink of recession.

The weak export growth highlights the importance of boosting domestic demand as the key driver for the economy in 2023, said Zhiwei Zhang, chief economist at Pinpoint Asset Management, adding markets expect Beijing to announce more policies to support consumption.

Exports contracted 9.9 yearonyear in December, extending a 8.7 drop in November, though slightly beating expectations, customs data showed on Friday. The drop was the worst since February 2020.

Reflecting faltering world demand, outbound shipments to the United States shrank 19.5 in December, while those to the EU fell 17.5, according to Reuters39; calculations based on the official data.

Despite the sharp falloff in shipments in the last few…