China’s economy unexpectedly grew stronger in the first quarter of 2022 despite the closure of Covid-19 in major cities hampering most economic activity in the country.
According to a report by the National Bureau of Statistics (NBS) in the Asian session, Gross Domestic Product (GDP) increased by 4.8%, exceeding expectations of a 4.4% increase over a year ago.
However, retail sales in March fell by 3.5%, falling short of expectations of a 3% decline from 6.7% recorded in the previous year.
While fixed asset investment for the first quarter increased by 9.3% over the previous year, exceeding growth expectations of 8.5%. Industrial production in March rose 5%, beating forecasts of 4.5%.
In addition, the NBS also reported that the unemployment rate rose to 5.8% in March from 5.5% recorded previously.
The world's second-largest economy has struggled to stem the worst new wave of Covid-19 since the start of the 2020 pandemic in March, causing most major cities to close following its Covid zero policy.
While data released for January and February exceeded expectations, readings in March began to reflect the effects of closures and travel restrictions around economic centers such as the financial hub city of Shanghai.
