BEIJING, (Reuters) – China’s export growth slowed down to single digits last month. However, imports remained steady as stricter and more restrictive COVID-19 restrictions halted factory production and disrupted supply chains, triggering a slump in domestic demand.

In dollar terms, exports grew by 3.9% in April versus the March 14.7% growth. This was slightly higher than analysts’ prediction of 3.2%. It was also the slowest growth since June 2020.

The imports were steady year-over-year in April, slightly improving from a 0.1% decline in March. This was a little better than the 3.0% contraction forecast by Reuters.

China reported a $51.12bn trade surplus for March, which was higher than the $50.65 billion forecast in the poll. In March, the country posted a surplus of $47.38 billion.

Beijing has been trying to stop the largest COVID-19 epidemics in the country for two years. It blocked roads and ports and restricted traffic in many cities, including Shanghai. This forced Apple (NASDAQ) suppliers Foxconn and Volkswagen (ETR) companies to cease operations.

Industry surveys revealed that factory activity had already contracted at an even faster pace in April. This raises concerns about a slowdown in world’s second largest economy, which could impact global growth.

Shi Xinyu said that COVID disruptions have closed only 20-50% stores in Yiwu.

Shi explained that “the weak import demand was due to) the economic downturn and COVID impact.” Life is difficult enough. When it rains, it pours on our roof.

Analysts also note that the growth of the economy is being affected by increased risks from the Ukraine war and persistently low consumption.

In a year of political tension, the authorities promised to provide more assistance in order to increase confidence and to prevent job loss.

Analysts are warning about rising risks of recession. They say policymakers need to provide additional stimulus in order for 2022’s official growth target of 5.5%. This is unless Beijing relaxes its zero COVID policy.

But, it is unlikely that such a thing will happen. The top officials of the country said that last week they would continue to follow their “zero COVID” policy. It is raising concerns about a worse economic downturn.

Exports were likely helped by a sharply declining yuan. As risks grow to the Chinese economy, April was their worst month for nearly two years. The Chinese currency reached a 1-1/2 year low.