Beijing had set itself a target of 5.5 percent, a rate already much lower than the performance of 2021 when the country’s GDP increased more than eight percent.
Strict virus controls and a real estate crisis drove China’s economic growth down to 3% in 2022 with the fourth quarter clocking 2.9% despite a chaotic exit from the zero-COVID policy.
The Chinese administration had set a target of 5.5% GDP growth but the zero-COVID policy and a chaotic exit leading to surge in cases towards the end of the year took a toll on the economy.
This is the second lowest GDP growth since the 1970s. However, analysts are now focusing more on the rebound in the current year even as the world stares at a recession.
Chinese government eased its strict zero-COVID policy under pressure from a wave of protesters which led to a surge in cases in December and took a toll on the economic rebound.
A revival in the current year depends highly on the trajectory of the COVID cases. Demand could take a hit if wary consumers stay away from shopping malls and restaurants amid a surge in COVID-19 infections. The government says the peak of that wave appears to have passed.