Despite COVID-19, China’s growth exceeded expectations

New data released from China’s National Bureau of Statistics shows that the country’s GDP in the first quarter of 2022 grew by 4.8% over the same period last year. The figure beat expectations, compared with a forecast of 4.4% polled by Reuters.

Fixed asset investment in the first three months of the year in China increased by 9.3% year-on-year (beating forecasts of 8.5%). Industrial production in March increased by 5% (beyond forecast of 4.5%).

However, retail sales fell 3.5% (a sharp drop from the forecast of 1.6%). The urban unemployment rate rose to 5.8% (compared to 5.8% in February). The unemployment rate of 16-24 year olds remains high at 16%.

“We must realize that with the domestic and international environment becoming increasingly complex and unstable, economic development is facing great difficulties and challenges.

We must coordinate our efforts to prevent and control COVID-19 and develop our economy and society. Putting economic stability as the top priority, pursuing progress while ensuring stability, and placing the task of ensuring stable growth in an even more prominent position,” the National Bureau of Statistics of China said. know.

According to CNBC, starting in March, China struggled to contain its worst COVID-19 outbreak since the early stages of the pandemic in 2020.

Reuters assessed that China’s growth exceeded expectations, but the economy has many risks on the outlook (Image: Reuters)

Reuters assesses that rising global risks from the war in Ukraine, the widespread COVID-19 lockdown and a weak real estate market are holding the world’s second-largest economy to a halt. Some economists say recession risks are growing.

In 2022, China sets a growth target of 5.5%. With the current developments, some analysts believe that the country is unlikely to achieve this goal without stronger stimulus measures. Last Friday, the People’s Bank of China announced the reserve requirement ratio for the first time this year, thereby releasing 530 billion yuan ($83.25 billion) into the market to support growth. chief.

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