China’s GDP growth is slowing as Covid’s restrictions and commodity demand come to fruition

Domestic sales in China grew steadily in the 18 months of the fourth quarter as the government struggled with its economic woes since the onset of the coronavirus epidemic.

Domestic sales are growing at 4 percent a year, which came from the National Bureau of Statistics unveiled on Monday, surpassing predicting fiscal but lower than 6.5% growth immediately in 2020.

The People’s Bank of China also cut interest rates for the first time since April 2020, adding to the list. mitigation measures in recent months associated with a decrease in stocks and restrictions on the spread of coronavirus.

Data and data moves reflect China’s economic downturn, which has once again been affected by the virus. very quickly than other major economies but struggled to keep up with the epidemic last year.

China’s economy grew 8.1 percent throughout the year 2021, but that figure was offset by a historic fall in early 2020, with annual growth slowing for the last quarter. Quarterly and quarterly growth, however, grew to 1.6 percent, compared to 0.7 percent adjusted from July to September.

Ning Jizhe, head of the NBS, said in 2021 China “promoted the resumption of the global economy and maintained a key role in economic growth and the prevention and control of epidemics around the world”.

But he added that “domestic finance is at the bottom of the three levels of need, empowerment and weakening expectations”.

The world’s strict standards for that to resolve all cases of coronavirus, and major cities are setting up locks in recent weeks, it has shown a lack of drinking. The global downturn is in high demand property segment has been a major economic burden and has brought worldwide attention to corporate health.

China’s challenges for long-term growth include a population. Births dropped by 12 percent a year to 10.6m, the lowest number recorded since the Chinese Communist Party took power in 1949. The number of people aged 60 and under dropped again for the first time, when the population was only 480,000.

Although exports abound As a result of China’s global trade power, industrial manufacturing, which rose 7.3 percent annually in December 2020, gained 4.3 percent in the same month last year, even more than previously predicted.

Commodity prices rose 4.4 per cent in 2021, while fixed inflation increased 4.9 per cent, although both metrics declined over the year. In the fourth quarter, commodity spending fell by 7.7%.

With concern among consumers, retail sales increased by 1.7 percent in December each year, the lowest interest rate in 14 months.

The Chinese government last year unveiled the so-called transportation system well ordinary, showing a desire to close the gap for inequality due to economic growth.

In 2020, Beijing set the standards for production reducing opportunities for the largest builders, who last year contributed to the financial crisis in all areas affected by trade and construction.

Growth was already there very slowly by the third quarter of last year, which led the government to unveil mitigation measures, including reducing the amount of money needed by banks.

Last month, the People’s Bank of China cut its one-year interest rate for the first time since early 2020, but with only five points. It left a five-year mark used to lend money unchanged.

On Monday, the central bank stepped up its efforts to reduce debt by cutting back on a one-year loan rate of 10 to 2.85% and a seven-day interest rate to repay bonds of up to 2.1%.

“The dramatic reduction in the seven-day rebate reflects the strong intentions of policymakers to stabilize GDP growth at random,” said Zhaopeng Xing, China’s senior analyst at ANZ. “Slow growth and increased risk of developing failures are all factors that lead to cuts.”

Chaoping Zhu, an expert on the global market for JPMorgan Asset Management, said that “an increase in incentives is expected”.

Additional reports of Emma Zhou in Beijing, Tom Mitchell in Singapore and Hudson Lockett in Hong Kong