China announced 2022 GDP growth that is above forecasts, as December retail sales were significantly higher than expected.
According to the National Bureau of Statistics, GDP grew by 3 per cent in 2022. This was more than the 2.8 per cent predicted in a Reuters survey.
The GDP growth rate fell short of the stated target of 5.5 per cent established in March. China’s economy has risen by 8.4 per cent in 2021, from just 2.2 per cent in 2020.
The fourth-quarter GDP increased by 2.9 per cent, above the 1.8 per cent rise forecast by Reuters.
Retail sales declined 0.2 per cent year on year.
Retail sales fell 1.8 per cent year on year in December, less than the 8.6 per cent drop forecast by a Reuters poll.
Catering revenues declined 6.3 per cent in 2022, according to retail sales data. Apparel, cosmetics, and jewellery sales all fell this year. Medicine was one of the bright spots, with sales up by nearly 40 per cent year on year in December.
In 2022, the city of Shanghai was shut down for almost two months in an effort to contain a Covid pandemic. China’s tight zero-Covid policy hindered cross-country travel and economic operations.
In early December, authorities quickly eased most safeguards in response to an increase in local illnesses. While many more individuals intend to travel during the forthcoming Lunar New Year, economists predict that Chinese consumer mood will take many months to improve.
In 2022, industrial production increased by 3.6 per cent. The figure increased by 1.3 per cent in December, much above the 0.2 per cent forecast by Reuters’ survey.
Fixed asset investment increased by 5.1 per cent in 2022, slightly more than the 5 per cent predicted by Reuters. On a year-to-date basis, infrastructure investment expanded quicker in December than in November, but industrial investment declined. Real estate investment declined by 10 per cent in 2022, a larger reduction than the year to November.
In December, the urban unemployment rate was 5.5 per cent, while the rate for young people aged 16 to 24 was 16.7 per cent.
In October, retail sales began to fall year over year.