China’s fixed asset investment surged again in April as a result of the government’s fiscal stimulus package, but exports dropped further, reflecting continuing weak demand in overseas markets.

Spending on fixed assets, particularly transport infrastructure and property, grew 30.5 per cent year-on-year in the first four months of 2009. That compares with a 28.6 per cent increase in the first quarter, said the National Bureau of Statistics.

April’s exports fell 22.6 per cent from a year earlier to US$91.94bn, Customs stated. This was steeper than March’s 17.1 per cent decline. Imports decreased 23 per cent in April, compared with a 25.1 per cent decline in March, which some analysts said was a sign that domestic investors were still unwilling to invest in new capacity.

Fixed asset investment is widely expected to be the biggest driver of GDP growth in 2009. JP Morgan predicted that it could account for 45 per cent of China’s economy this year, if it maintains a growth rate 25-30 percent for the next eight months.