Strict virus controls and a real estate crisis have slowed China’s economic growth to 3% in 2022, with the fourth quarter clocking in at 2.9% despite a shambolic withdrawal from the zero-COVID policy.
The Chinese government had set a target of 5.5% GDP growth, but the zero-COVID policy and a disorderly departure that resulted in a rise of cases at the end of the year took a toll on the economy.
Since the 1970s, this is the second-lowest GDP growth rate. Analysts are now focused more on the current year’s resurgence, despite the fact that the world is in recession.
Under pressure from a wave of demonstrators, the Chinese government relaxed its stringent “zero-COVID” policy, resulting in an increase in instances in December and weighing on the economic recovery.
The trajectory of the COVID cases is critical to a comeback in the current year. Demand may suffer if people avoid shopping centres and restaurants due to an increase in COVID-19 infections. According to the authorities, the top of that wave looks to have passed.