China’s exports fell for a 9th month on weak global demand, reinforcing the government’s case for sticking with a “moderately loose” monetary policy to fuel domestic growth.

Overseas sales dropped 23 % in July from a year earlier, the customs factor said today on its Web site. That matched the median estimate in a Bloomberg News survey of 23 economists. Exports fell 21.4 % in June.

China’s exports and imports may “further stabilize and start to recover in the coming months as the extreme uncertainties that froze orders earlier on fade,” said Wang Tao, an economist at UBS AG in Beijing. “Towards the end of 2009, we expect exports to recover on rebounding consumer demand, even though from a lower level.”

Tags:  china's export decline