register China’s economy A growth rate of 4.8% during the first quarter of this year, the National Bureau of Statistics announced today, Monday, warning of “big challenges” in the future, given that the re-emergence of the Corona virus threatens Beijing’s ambitious annual goal.
The world’s second-largest economy was already losing steam in the latter half of last year, with the property market slumping and regulatory crackdowns taking place.
Beijing’s tough approach to this year’s coronavirus outbreak has disrupted supply chains and tens of millions of people have been quarantined, including in the hubs of economic activity in Shanghai and Shenzhen.
The National Bureau of Statistics said China’s GDP growth was better than expected at 4.8 percent year-on-year in the first quarter, up from 4 percent in the final months of 2021.
But the data did not take into account the negative impact of the stone imposed in Shanghai several weeks ago.
Monday’s numbers came in higher than analysts’ expectations.
However, virus-related restrictions that included large cities in March put pressure on retail sales, leading to a rise in the unemployment rate.
All this is added to the pressures placed on officials to achieve the country’s full-year growth target, which is set at about 5.5%, especially since this year is important for President Xi Jinping, who aspires to another term at the helm.
“We must realize that with the increasing complexity and uncertainty of the domestic and international environment, economic development faces great difficulties and challenges,” said Fu Lingwei, spokesman for the National Bureau of Statistics.
While China saw a slight pickup in industrial growth earlier this year and spending was buoyed by the Lunar New Year holiday, movement restrictions were imposed in March that disrupted businesses and kept consumers at home.