The world’s second-largest economy began to lose steam in the second half of 2021 with a decline in the real estate sector and the rise of COVID-19 cases, which caused lockdowns in several cities.
Health restrictions in some of the country’s major cities, including Shanghai and the tech hub of Shenzhen, also hit retail and employment figures.
However, the figure does not fully reflect the impact of the Shanghai lockdown, which has left millions of people at home for several weeks.
With this, pressure is growing on the authorities to reach the growth target of 5.5% by 2022, a key year for President Xi Jinping, who aspires to remain in power for another five years.
difficult environment
“We must understand that with the local and international environment becoming more complicated and uncertain, economic development faces increasing difficulties and challenges,” Linghui said in a statement.
In addition to the rebound in coronavirus infections, the sanctions on Russia for the invasion of Ukraine also weigh on the Chinese economy.
China saw an increase in its manufacturing output this year and consumption was boosted by the Lunar New Year holiday, but movement restrictions put in place in March due to the pandemic hit the economy.
Industrial production rose 5% in March, lower than the period in January and February, according to ONE.
Meanwhile, retail trade decreased 3.5% and urban unemployment rose to 5.8% in March, indicated the statistical agency.
“March activity suggests the Chinese economy has slowed, especially domestic consumption,” Tommy Wu, chief China economist at Oxford Economics, said in a note.
