Chinese economy It registered its fastest growth in a decade in 2021, although it declined in the last quarter due to the outbreaks of the coronavirus and the decline in the real estate market, according to official figures released this Monday.
8.1% expansion exceeded forecastss, but the National Statistics Office (ONE) warned that “The local economy faces the triple pressure of the contraction in demand, the shock in supply and the drop in expectations.”
Furthermore, fourth-quarter growth was the slowest of the year at 4%, down from 4.9% in the July-September period.
China has faced recent outbreaks of the coronavirus and a housing market slump.
China’s “zero covid” policy has allowed life to normalize within its territory, but strict border controls and targeted closures to contain local infections have undermined the economy.
A series of Covid-19 outbreaks hit the recovery in the second half of last year, reimposing strict containment measures.
Likewise, key industrial areas suffered blackouts due to measures to contain carbon emissions, problems in the supply chain and higher energy prices.
Industrial production grew more than expected, 4.3% in December according to official data, while retail sales growth declined to 1.7%.
ING economist Iris Pang told AFP that the low level of sales is due to “cars and the lack of semiconductors for their production.”
Urban unemployment rose to 5.1% in December, according to official figures.
“Economic growth is clearly under pressure and the recent omicron outbreaks in China have exacerbated downside risk,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
Meanwhile, Beijing remains on high alert as it prepares to host the Winter Olympics in February, with severe lockdowns, border restrictions and extensive quarantines.
Millions of people in various cities have been confined to their homes in recent weeks after cases of covid-19 were detected in several port cities.
(Source: AFP)
