With growth of 4.5% in the 1st quarter, China wakes up after three years of Covid

China announced on Tuesday a marked acceleration of its economic growth in the first quarter (+4.5% in one year), thanks to the recovery of activity in the country since the lifting of anti-Covid sanitary restrictions.

These draconian measures, which included mandatory quarantines, repeated lockdowns, PCR tests and travel restrictions, ended in December.

Since their introduction in 2020, they have dealt a severe blow to the economy due to the climate of uncertainty generated and the inconvenience they cause in the daily lives of Chinese people and companies.

Although they have now risen, activity was able to pick up again in the first quarter despite a “difficult and complex international environment,” the National Statistics Office (BNS) announced. Analysts surveyed by AFP anticipated a more moderate rise (3.8%).

This is the first time since 2019 that a full term has been tested without the impact of health restrictions. From one quarter to the next, the growth of the Asian giant increased by 2.2%, after stagnating in the October-December period.

consumption skyrockets

The official growth figure for China, eminently political and subject to prudence, nevertheless continues to be highly analyzed given the weight of the second largest economy in the world.

China is aiming for 5% growth this year, a target that could be difficult to achieve, Chinese Premier Li Qiang has warned.

Retail sales, the main indicator of household consumption, confirmed their recovery in March (10.6% in one year). They had experienced four months of contraction at the end of 2022, before rebounding in January-February combined (3.5%).

In recent weeks, the Chinese have returned to restaurants, taking up the train or plane, helping to revive services. For its part, industrial production increased 3.9% annually last month, compared to 2.4% in January-February.

The unemployment rate stood at 5.3% in March compared to 5.6% the previous month. Last year, the Asian giant’s GDP grew by 3%, far from the official target of 5.5%, and one of the weakest rates in four decades.