China's economic growth in 2022 recorded one of its worst levels in nearly half a century. Excluding growth of 2.2% after the first Covid shock in 2020, this is the worst performance since 1976, the last year of the decade-long Cultural Revolution that took its toll on the economy.
According to Arabiya.net, economic activity during the fourth quarter of 2022 was affected by the strict restrictions related to Covid and the slowdown in the real estate market, which increased pressure on policymakers to unveil more stimulus this year.
Data from the National Bureau of Statistics on Tuesday showed gross domestic product grew 2.9% in the October-December period compared to the same period a year ago, slower than the 3.9% pace in the third quarter.
The rate still beats Q2 growth of 0.4% and market expectations of a 1.8% rise.
On a quarterly basis, GDP stagnated, hitting zero in the fourth quarter, compared with growth of 3.9% in the July-September period.
But for the whole of 2022, GDP grew 3%, far behind the official target of around 5.5% and far behind 8.4% growth in 2021.
And China's economic problems last year had repercussions that were reflected in global supply chains, which are still suffering now with declining demand.
In early December, Beijing abruptly eased restrictions imposed to combat the COVID-19 outbreak after unprecedented protests.
The World Bank expected China's GDP to rebound to 4.3% in 2023, but it is still below expectations.
