China's economic growth edged up to a still-weak 4.8 per cent over a year ago in the first three months of 2022 as spreading coronavirus outbreaks prompted the shutdown of major industrial cities.
Growth crept up from the previous quarter's 4 per cent following a slump triggered by tighter government controls on use of debt by China's vast real estate industry, official data showed Monday. Compared with the previous quarter, as other major economies are measured, growth declined to 1.3 per cent from 1.4 per cent.
First quarter growth was well below the ruling Communist Party's official target of 5.5 per cent for the year. Forecasters have said that will be hard to meet without more government stimulus spending.
Retail spending, factory output and investment in factories, real estate and other fixed assets rose.
The national economic recovery was sustained and the operation of the economy was generally stable, said a government statement.
Authorities have suspended access to Shanghai and some other industrial cities to contain virus outbreaks under the ruling party's zero-COVID strategy to isolate every infected person. Global automakers and other manufacturers have stopped or reduced production due to supply disruptions.
The ruling party already was promising tax refunds to businesses to reverse the slump that began in mid-2021. Last week, Premier Li Keqiang, the No. 2 leader, called for quicker action to get help to struggling entrepreneurs.
Retail sales rose by a modest 3.3 per cent over a year earlier after consumer demand was hurt by a government appeal for the public to avoid travelling during February's Lunar New Year holiday, normally a time for gift-giving and banquets.
Factory output rose 6.5 per cent over a year earlier. Investment in factories, real estate and other fixed assets increased 9.3 per cent, possibly reflecting official orders to banks to lend more easily.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU