China’s economic growth was reported better than expected in the last quarter of 2021, but the recorded expansion was still at its weakest rate in a year and a half.
According to data released by the National Bureau of Statistics (NBS), Gross Domestic Product (GDP) grew 4.0% in the fourth quarter (October-December) from the previous year compared to the expected increase of 3.3%.
However, the growth recorded declined from the third quarter which recorded 4.9%. Overall annually, China grew 8.1% far exceeding the government’s target for growth of over 6%.
The Asian giant’s economy started strong in early 2021 when most economic activity recovered from the pandemic -induced slump in the previous year.
However, it weakened again in the second half of last year due to supply chain disruptions, the Evergrande issue which had a major impact on investor and investment confidence as well as the spread of Covid-19 which affected private travel and consumption.
The slowdown prompted China to resume investment and economic activity with the central bank cutting its interest rates for the first time since early 2020 to support growth.
Meanwhile, investors were also seen with Chinese retail sales data showing a slower -than -expected increase with only a 1.7% increase in December from 3.9% previously recorded.
