April 11 (Bloomberg) -- China’s 2009 exports may shrink by as much as 10 percent, putting pressure on the government to attract up to 2 trillion yuan ($294 billion) in foreign funds to meet its 8 percent economic growth target, a researcher said.

Exports fell for a fifth month in March, adding urgency to government efforts to stimulate domestic demand to revive growth in the world’s third-biggest economy. Overseas sales declined 17.1 percent to $90.29 billion from a year earlier, the customs bureau said yesterday. Imports dropped 25.1 percent, leaving a trade surplus of $18.56 billion.

“We should be thankful if only 2009 exports can show zero growth, or maintain at the same rate as 2008,” said China’s central policy deputy research director Zheng Xinli, at a financial forum today in Beijing. “My concern, and my own forecast, is that exports may decline by 5 percent or up to 10 percent this year.”

Collapsing world trade and China’s slowest economic expansion in seven years have cost the jobs of millions of factory workers and prompted Premier Wen Jiabao to roll out a 4 trillion yuan ($585 billion) stimulus package. To spur consumption, China is subsidizing rural purchases of televisions and refrigerators and plans a 29 percent increase in welfare spending this year.

The Chinese government needs to keep the economy expanding at least 8 percent every year to generate enough jobs to feed the estimated 20 million people who enter the labor force annually.

“China’s main economic goal this year should be to ensure growth and create jobs,” said Jiang Zhenghua, a former deputy head of the Chinese legislature, at the same forum today.

Last Updated: April 11, 2009 00:21 EDT