City
Epaper

Covid resurgence slams China--slowdown looms amid tepid first quarter growth of 4.8%

By IANS | Published: April 21, 2022 12:30 PM

New Delhi, April 21: China, despite registering an economic growth of 4.8 per cent in the January to March ...

Open in App

New Delhi, April 21: China, despite registering an economic growth of 4.8 per cent in the January to March period of this year, will have to steer through serious challenges amid the Russia-Ukraine conflict and resurgence of Covid-19 infection in Shanghai. Though the growth rate is higher than the 4 per cent registered in the October to December period of 2021, weakening consumer spends and increase in unemployment have started to worry the authorities.

The household debt levels have also increased, which means citizens will be wary of spending.

Shanghai, the commercial capital of the country and home to about 25 million people, has been under stringent lockdown since the beginning of April. Analysts told India Narrative that the impact of the lockdown will be felt in the next quarter.

China's zero Covid approach has come under scrutiny as several companies were forced to remain shut while a large number of small and medium enterprises has been forced to wind up. "This has led to salary reductions and uncertainty among the people, which now has started to impact overall spendings, though Beijing has assured that all necessary steps will be taken to support growth and employment," an analyst said.

Arvind Yelery, senior research fellow at the Peking University and visiting faculty at Fudan University in Shanghai, told India Narrative that liquidity infusion into the system will be critical. "A host of measures will be rolled out to encourage spends and thereby support growth," Yelery said, adding that the authorities are aware of the problems.

The country's central bank People's Bank of China is set to come out with a host of monetary policy measures, including reduction in key policy rates. Besides, liquidity infusion into the system will be critical.

After the first quarter GDP numbers, China's Foreign Ministry, however, said the country's economic growth continued to "sustain the momentum of recovery and development."

"Major macro indicators remained within an appropriate range," Wang Wenbin, Spokesperson of the Ministry, said at the press conference.

According to CNN, Larry Hu, Chief Economist for Greater China at Macquarie Group, wrote that "economic data in April is set to worsen further".

The full year's growth rate could be around 5 per cent though the target set is 5.5 per cent.

The International Monetary Fund has revised down the country's growth rate further from the earlier projection of 4.8 to 4.4 per cent for 2022.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Tags: The Last of the MohicansArvind yeleryNew DelhiShanghaiPeking UniversityThe new delhi municipal councilDelhi south-westWang wenbinLinn huangNew-delhi
Open in App

Related Stories

NationalNew Delhi: 30-Year-Old Man Arrested for Demanding Rs 20 Lakh From Car Showroom Owner

NationalNew Delhi: 28-Year-Old Man Held for Molesting Minor Boy in Metro

InternationalCBI Arrests 4 for Trafficking Indians Into Russia-Ukraine Conflict Zone (See Tweet)

NationalNew Delhi: 18-Year-Old Stabbed to Death by Two Individuals Over Romantic Rivalry

NationalSunita Kejriwal, Atishi Meet Delhi CM Arvind Kejriwal in Tihar Jail

National Realted Stories

NationalMumbai Dust Storm: Hoarding Crash Toll Mounts to 14, 43 Injured

NationalUttar Pradesh: Car Mows Down Woman Employee at Delhi-Meerut Expressway Toll Plaza; CCTV Video Goes Viral

NationalInstagram 'brothers' dupe woman of Rs 2 L in UP

NationalUttar Pradesh: Six Killed in Collision on Delhi-Lucknow Highway in Hapur (Watch)

NationalAssam's Class 10 compartment exams to begin on May 28