China reports 3% GDP growth for 2022

BEIJING — China reported GDP growth for 2022 that beat expectations.

GDP grew by 3% in 2022, the National Bureau of Statistics said Tuesday. That was better than the 2.8% forecast in a Reuters' poll. In 2021, growth had rebounded by 8.4% from just 2.2% growth in 2020.

Fourth-quarter GDP rose by 2.9%, beating expectations from the Reuters' poll of 1.8% growth.

In 2022, the metropolis of Shanghai locked down for about two months in an attempt to control a Covid outbreak. China's stringent zero-Covid policy restricted travel and business activity across the country.

Authorities abruptly relaxed most controls in early December, amid a surge in local infections. While far more people plan to travel around the upcoming Lunar New Year, analysts expect Chinese consumer sentiment will take a few months to recover.

Retail sales fell by 0.2% for the year. But retail sales in December declined by 1.8% from a year ago, less than the expected 8.6% plunge predicted by a Reuters' poll.

Industrial production rose by 3.6% in 2022. The figure rose by 1.3% in December, well above the 0.2% predicted by the Reuters' poll.

Fixed asset investment for 2022 rose by 5.1%, slightly above the 5% expected by Reuters. Infrastructure investment on a year-to-date basis grew faster in December than in November, while investment into manufacturing slowed its growth. Real estate investment fell by 10% in 2022, a steeper drop than recorded for the year through November.

The unemployment rate in cities was 5.5.% as of December, while that of younger people ages 16 to 24 remained far higher at 16.7%.

Last year, locals' penchant to save soared to record highs. Uncertainty about future income remained high. Youth unemployment hit a record high of nearly 20% in July.

Retail sales also started to decline year-on-year in October.

China's other major growth drivers have tapered off.

Real estate remained in a slump, despite authorities' easing financing restrictions for developers and homebuyers.

Exports started to fall in October on a year-over-year basis — the first decline since May 2020, according to Wind Information.

In December, exports and imports both fell, albeit by slightly less than analysts expected. Economists anticipate a drop in demand for Chinese goods from an economic slowdown in the EU and U.S.

China's leaders are set to announce the full-year GDP growth target in March at an annual parliamentary meeting. It will be the first such gathering since Chinese President Xi Jinping consolidated his power in October at a national congress of the Communist Party of China.

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