China’s first quarter gross domestic product (GDP) grew at a faster than expected annualized
rate of 4.8% despite a resurgence of COVID-19 in March.
According to data released by China’s National Bureau of Statistics, first quarter GDP rose by
4.8%, topping expectations of a 4.4% increase from a year earlier.
China’s fixed asset investment for the first quarter rose by 9.3% from a year ago, topping
expectations for 8.5% growth. Investment in manufacturing rose by 15.6% in Q1 from a year
ago, and infrastructure saw an 8.5% increase over the same period.
Industrial production in March rose by 5%, beating a forecast for 4.5% growth. However,
China’s retail sales in March fell by a more-than-expected 3.5% from a year earlier.
Since early March, China has struggled to contain its worst COVID-19 outbreak since the initial
phase of the pandemic in 2020. Back then, lockdowns across more than half the country
resulted in a 6.8% contraction in first quarter growth from a year earlier.
The unemployment rate across 31 major Chinese cities rose from 5.4% in February to 6% in
March — the highest level on record.
Real estate, which has struggled since Beijing’s crackdown on developers’ high use of debt,
saw investments rise by 0.7% in the first quarter from a year ago. That’s despite double-digit
declines in the floor space and total sales of commercial buildings.
Retail sales grew by 3.3% in the first quarter from a year ago, but the apparel, autos and
furniture subcategories each posted declines for the period. Within retail sales, jewelry declined
the most and was down by 17.9% in March from a year ago. It was followed by a 16.4% decline
in catering and a 12.7% decline in clothing and shoes, the Chinese data showed.
