China‘s economy, a key engine of global growth, expanded 8.1 percent in 2021 on the back of its strong recovery from the virus, data from the National Bureau of Statistics (NBS) showed, beating forecasts of 8. 0 percent in an AFP poll.
But much of that growth came in the first half of the year, with the economy hit by a series of shocks towards the end of 2021.
Figures on Monday showed growth in the fourth quarter was the slowest in more than a year, at 4 percent, down from 4.9 percent in the third quarter.
China‘s central bank also lowered the rate on its one-year policy loans to 2.85 percent, the first drop since early 2020 at the height of the pandemic and a clear sign that the outlook for the year remains being uncertain.
NBS spokesman Ning Jizhe warned on Monday that “the national economy is under the triple pressure of contracting demand, supply shock and weakening expectations.”
Changes to the strict “one child policy” since 2016 have not resulted in the expected baby boom, as changing mindsets and rising costs of ownership make many young couples reluctant to have more than one child. son.
Its factories have mostly avoided closures at a time of spiraling international demand, as many major economies imposed painful lockdowns and restrictions on working from home.
But its recovery in recent months was hampered in part by a series of outbreaks as officials re-imposed sweeping, strict containment measures that hit consumer demand.
Beijing’s push to curb excessive debt and rampant consumer speculation also shocked a sector that had long been a key local driver for China.
The growth was “dragged by a slowdown in the real estate sector … as well as new outbreaks of covid that increased restrictions in affected areas and heightened caution across the country, especially hurting demand for services,” said Tommy Wu of Oxford Economics.
Outbreaks have increased in recent months, albeit in small numbers by global standards.
China on Monday reported its highest number of infections since March 2020, with tens of millions affected by lockdowns, travel restrictions or mass testing.
Beijing has been on high alert as it prepares to host the Winter Olympics in a firm “closed loop,” with new restrictions requiring testing before and after travel to the capital.
The 13 million residents of Xi’an, a major tourist city, have been in lockdown for almost a month.
Outbreaks have also hit key port cities and manufacturing hubs.
– Economic pressure: Key industrial areas also experienced power outages due to an emissions reduction campaign, supply chain issues and rising energy costs in the second half of 2021.
In December, industrial production grew more than expected by 4.3 percent, the NBS said. For the full year, industrial production grew 9.6 percent.
But retail sales growth slowed sharply to 1.7 percent last month, down from 3.9 percent in November, as waves of Covid restrictions dampened consumer confidence.
The urban unemployment rate rose to 5.1 percent in December.
“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.
China also looks set to see another quiet Lunar New Year, normally a key time to spend as hundreds of millions commute across the country, with many workers being told not to travel due to Covid.
Source Credit: TheGuardian
- Post Insurgency: Stakeholders dialogue on building resilience in Borno
- Lawan, Orji Kalu visit Katsina ahead of APC presidential primaries
- 2023: I’ll declare National Security Emergency on inauguration day if elected— Hayatu-Deen
- PDP Primary: Stakeholders urge NWC to respect will of Anambra people
- Fashola seeks public collaboration on road safety, infrastructure protection
- APC constitutes 61-member campaign council for Ekiti State governorship election
- If elected, I will implement a blue print for the immediate growth of Delta – APC female aspirant
- Environmentalists fault EU’s alternative to Russian Gas instead of renewables
- Zamfara APC reconciliation not on personal interest, says ex Gov. Yari
- Experts, veterans charge journalists on professionalism
- Nigeria, others review progress on global migration compact
- NAF free medical outreach excites Kaduna residents
- Ooni urges Oyetola to rely on divine success for his second term
- Average price for 5kg cooking gas increases to N3,800.47- NBS
- Primary : Atiku visits Gombe, confident of PDP delegates’ support
- Ondo assembly passes 2022 OSOPADEC budget into law
- Okada ban: Lagos Govt. says June 1 deadline won’t stop enforcement
- Gov. Ugwuanyi sets up, operationalises 10 type-3 PHC centres in Enugu – ENS-PHCDA boss
- WHO urges increased surveillance as COVID-19 cases rise in Americas
- Mali’s withdrawal from G5 Sahel, Joint Force ‘a setback’ for the region
- FG committed to protecting Nigerians from harmful use of data- Pantami
- CAN, JNI pledge support as FG conducts headcount for teachers, pupils
- Delta traditional rulers to partner CSOs to deepen gains of MDGs
- I’ll complete airport, school projects before leaving office – Fayemi
- ASUU Strike: NANS protests in Ekiti
- British Council to establish Arts, Culture Academy in Nigeria
- Africities 2022 Summit: Backbone of the continent, intermediary cities absorb most of the urban population growth, according to a report co-led by the African Development Bank
- Lagos govt., Polaris Bank unveil N1bn fund to empower artisans
- Nigeria reiterates commitment to implementing GCM agreement in New York
- Okada ban: Lagos residents express divergent views
- Perm Sec. harps on need to revive lost cultural values, traditions
- Businessman arraigned for alleged importation of fake drug
- Enugu: No life lost, nobody injured in Emene incident – Police
- FCTA demolishes over 30 houses in Trademore Estate Lugbe, over flooding
- Salami Panel: Magu will still be prosecuted if indicted despite promotion – Minister
- African Energy Week (AEW) Releases First Video for its Energy Investment Drive
- Troops recover guns, ammunition from insurgents enclave in Imo – Army spokesman
- Couple charged with involuntary manslaughter of housemaid knows fate July 7
- FG, Netherland to intensify efforts at curbing environmental hazards in Nigeria
- Investigating Policy and Business Requisites to Boost Hydrocarbon Investment in Africa
- NGO canvasses for more awareness on laws against SGBV in grassroots
- Agroforestry, Land Use policy to address land degradation – Minister
- African Energy Week calls for nominations to its world-renowned African Energy Awards
- Managing internal boundary crisis key to sustainable development — Ondo deputy governor
- Digitalisation will make public service smarter, faster — Akeredolu
- 25 ships discharge petrol, other items at Lagos ports
- Smart Africa Digital Academy (SADA) Launches its National Digital Academy in Ghana
- Army boss calls for civil society involvement in tackling insecurity
- 10th Youth Development Webinar Program 2022 “Building Youth Resilience: Transition to Green Economy and Beyond”
- Buhari’s support gave me political glory – Bauchi governor