China’s GDP grows 3% in 2022, one of the worst results in almost 50 years

China’s economy slowed in the fourth quarter of 2022, growing 2.9% year-on-year, less than the 3.9% expansion recorded in the July-September period, according to data from the National Bureau of Statistics this Monday ( 16). The Chinese GDP (Gross Domestic Product) result exceeded expectations, but still shows the consequences of the strict “Covid zero” policy adopted by the country.

The forecast of analysts consulted by Reuters was an annual expansion of 1.8%. Cumulative growth for 2022 was 3%, below the target of around 5.5%. Excluding the 2.2% expansion after the first Covid hit in 2020, this is the worst result since 1976.

In the quarterly comparison, GDP remained stable in the period between October and December, compared to expectations of a drop of 0.8% and a gain of 3.9% in the previous quarter.

China’s economy struggled throughout 2022, with major industrial centers including Shanghai and the Yangtze River Delta area, as well as Guangzhou, closed or under restrictions for extended periods as part of the government’s “Covid zero” strategy.

That stringent policy was abruptly lifted last month, and economists expect growth to pick up this year, although a rise in Covid infections may hold back the near-term recovery. Beijing pledged more support for the economy as external demand falters amid global recession risks.