BEIJING, (Reuters) – China’s November export growth slowed due to a weakening demand, a stronger yuan and high costs. However, import growth accelerated in December and was well ahead of expectations. This suggests that there is more domestic activity.

According to customs data, November’s imports and exports increased by 22% each year. They also rose 31.7% over the same period in 2011, according to Tuesday’s statistics.

A Reuters poll showed that analysts had predicted November’s exports to rise 19.0%, after jumping 27.1% in the month before.

According to the poll, imports are expected to rise 19.8% versus an October gain of 20.6%.

China’s trade surplus was $71.72billion last month, in contrast to the forecast of an $82.75billion surplus. China posted a surplus of $84.54 billion in October.

These data come a day following China’s central banking announcement of a reduction in the cash banks have to keep in reserve. This is its second such move for this year to support slowing growth.

Although China has made a remarkable recovery from the pandemic, there are still signs that momentum may be slowing down. China is facing difficulties in its recovery due to power shortages, regulation crackdowns, and problems with the property sector.

Analysts anticipate more supportive policy actions in the coming months.

According to a private sector survey, factory activity decreased in November because of higher prices and lower demand.

China’s factory gate inflation reached a 26 year high in October, as prices for coal rose amid an industrial power crisis in China.

Although Omicron COVID-19 has not been detected in China, analysts believe it could increase import challenges and pressure the current zero tolerance policy for coronavirus cases.