China GDP Annual Growth Rate

The Chinese economy expanded 4.8% yoy in Q1 of 2022, above market consensus of 4.4% and faster than a 4.0% growth in the previous period. However, the risk of a sharp slowdown in the coming months heightened, amid widespread COVID-19 lockdowns, a prolonged downturn in the property sector and uncertainty from the war in Ukraine. Meantime, separate data on March activity showed retail sales fell 3.5% yoy, down for the 1st time since July 2020, and worse than market expectations. Analysts say that April data will likely weaken further, dragging down by strict restrictions in the financial hub of Shanghai. In addition, the job market is already showing signs of stress, with China's nationwide survey-based jobless rate at 5.8%, the highest since May 2020, and up from 5.5% in February. For 2022, Beijing has targeted the economy to grow around 5.5% as headwinds gather, slowing from a 8.1% expansion last year, which was the steepest pace in nearly a decade, and after a 2.2% growth in 2020.