The government has determined that the downturn in the economy has entered its second month on the back of sluggish exports and slowed domestic recovery.

In a monthly assessment report on Friday, the finance ministry said while inflation has recently slowed, the trend of stagnation persists, citing a moderate recovery in domestic consumption, weakened exports and a contraction in the business sentiment of manufacturers.

The assessment for March resembles that of February, the first month in the post-pandemic recovery period that the ministry concluded the domestic economy was trending downward.

Exports dropped seven-point-five percent on-year last month, continuing a five-month streak of negative growth, while imports jumped three-point-five percent to post a deficit of five-point-27 billion dollars.

Retail sales, a gauge of private spending, dropped two-point-one percent in January on-month due to weakened overall demand.

While uncertainties and downward risks persist amid monetary tightening, the ministry expected the reopening of the Chinese economy to have a positive impact on the local economy down the road.