China’s GDP growth falls to 3%, Second lowest GDP growth in 50 years. China has experienced a growth fall of 3% in 2022
According to the National Bureau of Statistics (NBS), The annual GDP of China totalled 121.02 trillion yuan ( $17.94 trillion) in 2022, falling below the 5.5 percent official target.
China’s economy was hit hard by the zero-Covid policy and slump in the real estate market. This has caused China’s economy to shrink to three percent in 2022.
Possible cause of China’s low GDP
The slow economic growth has been blamed mainly on the strictly implemented zero-Covid policy which led to periodic lockdowns and the ruling Communist Party’s crackdown on big industrial firms besides the lingering real estate crisis.
So far, this is the slowest growth of the Chinese economy since the 2.3 percent registered in GDP in 1974.
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Also, China experienced a significant decline in GDP this year, in terms of dollars declining from $18 trillion in 2021 to USD 17.94 trillion last year mainly due to a sharp rise of the dollar against RMB (the Chinese currency) in 2022.
The GDP growth in the fourth quarter was 2.9 percent year-on-year, compared with 3.9 percent in the third quarter as it was hit hard by recurring covid lockdowns of various urban centers, like the top industrial and business hubs like Shanghai.
National Bureau of Statistics Reports
Meanwhile, The National Bureau of Statistics has reported that the country will comprehensively deepen reform and focus on strengthening market confidence to promote improvements just economy to revive the economy.
It also reported that China had set a modest economic growth target of around 5.5 percent for last year, but the target remained unattainable due to the impact of the coronavirus.
However, China’s job market remained generally stable in 2022 as a total of 12.06 million new urban jobs were created last year.
The number of jobs created last year even exceeded the annual target of 11 million.
In addition, the head of NBS had told the media that China’s national economy continued to develop despite downward pressure.
“China will make economic stability its top priority and pursue progress while ensuring stability this year,” he said.
Still, China needs to solidify the foundation of its International economy to help with domestic economic recovery.
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