China’s economic growth registered a downturn in the second quarter of 2022 as growth was only 0.4% due to health restrictions and a real estate crisis that severely disrupted activity, according to official data released Friday.
This decline was expected, but analysts polled by AFP expected a more moderate slowdown (up 1.6 percent).
In the first quarter of 2022, China’s GDP grew by 4.8 percent year on year.
Since 2020, the country has been pursuing a zero Covid policy, which is to avoid new infections as much as possible through specific isolation measures, extensive screenings, quarantining those found to be infected and tracking their movements.
And in the spring, the economic capital of Shanghai closed for two months due to the worst outbreak in the country in two years. The idea to lay a similar stone for a specific period in May 2022 originated in the capital Beijing.
These measures dealt a severe blow to the economy, forcing a large number of companies, factories and companies to cease operations. It also puts pressure on supply chains.
In June 2022, retail sales, the main measure of household spending, recorded a strong year-on-year growth of 3.1%. Industrial production rose 3.9% year-on-year last month after an unexpected 0.7% rise in May 2022.
Source: AFP.
