A traffic police officer is preparing to inspect a truck at a service station near Shanghai, which has imposed stricter restrictions on travel to and from the city as China struggles with its worst Covid epidemic since the first days of the 2020 pandemic.
Yin Licin | China News Service via Getty Images
BEIJING – China’s GDP for the first quarter grew faster than expected despite the impact of the blockade of Covid in parts of the country in March, according to data released by the National Bureau of Statistics on Monday.
In the first quarter, GDP grew by 4.8%, exceeding expectations for an increase of 4.4% compared to a year earlier.
Investments in fixed assets for the first quarter increased by 9.3% compared to the previous year, exceeding expectations for growth of 8.5%. Industrial production rose 5% in March, beating the 4.5% growth forecast.
However, retail sales fell by more than 3.5% in March from a year earlier. Analysts polled by Reuters expected a decline of 1.6%.
Beginning in March, the country is struggling to control its worst epidemic from Covid since the start of the 2020 pandemic.
“We must be aware that as the domestic and international environment becomes increasingly complex and uncertain, economic development faces significant difficulties and challenges,” the bureau said in a statement.
Read more about China from CNBC Pro
The urban unemployment rate rose to 5.8% in March from 5.5% in February. The unemployment rate for those aged 16 to 24 remains far higher at 16%.
Retail sales increased by 3.3% in the first quarter compared to the previous year, but the clothing, car and furniture subcategories still declined over the period.
In retail sales, jewelry fell the most, by 17.9% in March compared to the previous year. There is a decline of 16.4% in restaurants and 12.7% decline in clothing and footwear, the data show.
“We must coordinate efforts to prevent and control Covid-19 and economic and social development, make economic stability our top priority and pursue progress while ensuring stability, and make the task of ensuring sustainable growth even more visible. position, ”the bureau said.
Although published economic data for January and February exceeded expectations, data for March began to reflect the impact of orders to stay at home and travel restrictions around economic centers such as the coastal metropolis of Shanghai.
Exports, China’s main driver of growth, rose 14.7 percent more than expected in March, but imports fell unexpectedly, by 0.1 percent from a year earlier, according to data released last week.
– This is breaking news. Please check again for updates.
Add Comment