Chinese economy growth slowed in March due to a resurgence of the coronavirus. Consumption, among other things, declined due to strict lockdown measures and the consequences of the war in Ukraine, which points to a worsening outlook.
However, the Chinese economy also grew faster in the first quarter than analysts generally expected.
Data from the Chinese government showed that gross domestic product grew by 4.8 percent in the first quarter of 2022 from a year earlier. That was higher than the 4.4 percent increase economists had expected and the 4 percent growth in the last quarter of 2021. Beijing’s growth target is about 5.5 percent for the full year.
Whether that is feasible now that the number of corona infections in China continues to rise. The government has a zero-Covid policy, and as a result, millions of people in Shanghai went into lockdown in March. Many factories are also forced to remain closed, and because the important port city is locked, supply signs are clogged. In addition, due to the war in Ukraine, the cost of raw materials has risen and, with it, the general price level.
In March, consumption fell by 3.5 percent, which is more than analysts expected. The number of unemployed has also increased.