China Economy: China’s economy in water, GDP growth half of India’s, economic growth rate at second lowest level in 50 years

China’s economic growth rate fell to three percent last year due to the widespread spread of Corona and the pressure of real estate recession. China’s economy was badly affected by the restrictions that kept millions of people locked in their homes. However, now after the removal of restrictions, it is improving. The World Bank has projected that China’s GDP will grow by 4.3 percent in 2023. The slowdown also reflects the high cost of the COVID-19 lockdown imposed by the Chinese government. The Chinese National Bureau of Statistics said that the Chinese economy will grow by 3% in 2022. This is a sharp deceleration from the 8.1% growth rate recorded in 2021.

This was the worst year for GDP growth in China since 1976 according to the Wall Street Journal. Experts who spoke to the news outlet, however, believe that a consumer-led reform in 2023 will boost the Chinese and global economy, despite fears in the US and Europe. Cracking down on Chinese tech companies, lifting restrictions on Australian coal and easing regulations on the real estate market would also aid the recovery, the news outlet cited people familiar with the development as saying.

However, he added that challenges such as lack of demand for Chinese exports, lack of consumer confidence, loss of jobs and businesses could impact the outlook. The confrontation between the US and China will also have an impact on its development. The Chinese government did not expect growth to slow down to 3% as they predicted growth of 5.5%. However, the lockdown announced to contain the spread of the disease meant that development stalled. In early 2022, China’s Shanghai, a global economic hub, shut down and even saw protests against the ruling regime due to its lockdown.