China's exports and imports have continued to decline in June, although by a smaller amount than in May,raising hopes the world's third-largest economy is recovering from its downturn.

Exports decreased 21.4% in June from a year earlier,according to figures provided by Chinese Customs.That was an improvement over May's record 26.4% drop.

But analysts warn that a full-fledged recovery will not be able to take place until China's export to the key markets of the US and Europe rebound.

"Overseas demand still hasn't recovered yet," said Shanghai Securities economist HuXIaoYue. "The role of exports in economic growth will continue to weaken."

China's imports in June also decreased by 13.2% from a year earlier, an improvement over May's 25.2% fall and January's record 43.1% dive.