Covid: China 2022 economic growth hit by coronavirus restrictions

 


China's economy grew last year at the second slowest rate in almost half a century - in a sign of how the country's strict coronavirus regulations have affected businesses.


Official figures show the gross domestic product (GDP) of the world's second largest economy rose 3% in 2022.


That is way below the government's target of 5.5% but better than most economists had forecast.


Last month Beijing abruptly lifted its strict zero-Covid policy.


The policy had a major impact on the country's economic activity last year but the sudden relaxation of the rules has led to a jump in Covid cases that threatens to also drag on growth in the early part of this year.

December.


Prices in the final month of 2022 fell by 0.2% from a month earlier as Covid-19 outbreaks across the country hurt demand.


Last week, International Monetary Fund (IMF) managing director Kristalina Georgieva urged Beijing to continue reopening its economy.


"What is most important is for China to stay the course, not to back off from that reopening," Ms Georgieva said.


"If they stay the course, by mid-year or there around, China will turn into a positive contributor to average global growth," she added.


Yating Xu, principal economist at S&P Global Market Intelligence, told the BBC that she has seen signs of a gradual recovery in Chinese consumer activity since its reopening.


"The government's increasing pro-growth stance and the economic recovery entering 2023 reduces the likelihood of a pandemic-policy reversal," she said.


"However, the full reopening of mainland China's borders is likely to be delayed until international restrictions against China-originated travel are dropped," she added.


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