China’s GDP Growth Histories Lowest Point in Decades with 3% Increase in 2022
Chinese Economy Growth Slower Than Decades-Low In 2022
The Chinese economy grew by just 3% in 2022, the lowest rate in recent decades, according to official data released today by the Asian country’s National Statistical Office. This figure excludes data from 2020, where the economy faced its initial Covid-19 impact and reported a growth rate of just 2.2%.
The experts had initially anticipated a sharp decline in the rate of growth of GDP compared to 2021 (8.1% or 8.4%, revised upwards) due to the ‘zero covid’ policy and its associated restrictions, which severely impacted economic activity.
However, in the last quarter of 2022, the Chinese economy grew 2.9% compared to the same period of the previous year – better than the expected contraction of 0.8% and increase of 1.8%. At the end of the year, total wealth reached 121.07 trillion yuan (17.95 trillion dollars, 16.58 trillion euros).
Analysts from the consultancy Oxford Economics have praised the “positive results” of Beijing’s coordination between the anti-covid strategy and economic development policies, however, have also pointed out that the economic recovery “is not solid” because of the continuing international struggles, the contraction of demand, the ‘shock’ of supply, and poor economic expectations.
Moody’s Analytics forecast a year-on-year GDP growth of 4.3% in 2023, with an anticipated 7.1% increase in 2024.