China's economy slows sharply in Q4, 2022
The nation's economy slowed sharply in the fourth quarter due to Covid curbs, dragging down 2022 growth to one of its worst in nearly half a century and raising pressure on policymakers to unveil more stimulus this year. Gross domestic product (GDP) grew 2.9 percent in the October-to-December period from a year earlier, data from the National Bureau of Statistics (NBS) showed on Tuesday, slower than the third-quarter's 3.9 percent pace. The rate still exceeded the second quarter's 0.4 percent expansion and market expectations of a 1.8 percent gain. Growth for the entire 2022 came in at 3.0 percent, the worst reading since a 1.6 percent contraction in 1976, excluding pandemic-hit 2020, which saw 2.2 percent growth. GDP growth in 2021 was 8.4 percent. Zhang Jiarui, a fellow at the Taihe Institute and assistant professor in economics at the Nottingham University Business School, thinks a 3.0 percent GDP growth is "already not an easy result". "In 2022, it’s a difficult year because the pandemic control policy has been changed significantly. Basically the whole year, except for December, China’s government has been implementing very strict prevention policies," he told RTHK.  "The overall GDP growth remains at 3.0 percent for this year is already not an easy result. But all these growth rates, including all the other macroeconomics data, are basically consistent with the market’s expectations," he said. Mainland officials have pledged to spur the world's second-largest economy this year while addressing some key drags on growth.  Exports are also expected to remain weak as the global economy teeters on the brink of recession, highlighting the importance of boosting domestic demand to drive a recovery in 2023.  The head of the NBS, Kang Yi told a news conference on Tuesday that the country’s employment situation is "generally stable", adding the economy is likely to improve in 2023. The economy created 12.06 million urban jobs in 2022, data from the bureau showed.  The World Bank has forecast China's GDP will rebound to 4.3 percent for 2023 – still below expectations.  And the country is continuing to battle a surge in Covid cases, while problems in the property industry are also still weighing on growth.  Measures to promote "stable and healthy" development were announced in November, including credit support for indebted developers and assistance for deferred-payment loans for homebuyers. (Additional reporting by Reuters and AFP)______________________________
Last updated: 2023-01-17 HKT 16:35 