China's exports continued to recover in May amid improving demand in developed countries, which analysts believe will ease concerns over a slowdown and help stabilize growth.

Exports increased by 7 percent in May from a year earlier period, outpacing the 0.9-percent increase in April and 6.6-percent drop in March.

However, imports in May declined by 1.6 percent year on year, compared with the 0.8-percent growth in April and 11.3-percent slump in March, according to the General Administration of Customs.

"The May export performance implies a consolidation compared with the underlying momentum in April," Louis Kuijs, chief economist at the Royal Bank of Scotland in China, said in a note.

Experts, however, warn of a very challenging outlook for China's foreign trade in 2014.