China’s gross domestic product (GDP) expanded by 3% year on year to 121.02 trillion yuan ($17.93 trillion/R308 trillion) in 2022 despite being mired in various growth pressures, data from the National Bureau of Statistics (NBS) showed on Tuesday.
The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.
“We see more upside risk to our 1.5 percent first-quarter growth forecast than before,” Lu Ting, chief China economist from Nomura commented on 2023 expectations in a note.
In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, the NBS said economic growth stabilised after various measures were taken to shore up growth.
Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2%. Fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.
China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.
Total retail sales of consumer goods remained stable at around 44 trillion yuan for 2022 despite a Covid-19 resurgence. Online retail sales of physical products alone hit 12 trillion yuan.
“China is still the world’s second-largest consumer market and the largest online retail market. It still holds clear advantages of a super-large-scale market,” said Kang Yi, the head of the NBS, at a media conference.
Chinese authorities have pledged to focus on stabilising the economy in 2023 and set boosting consumption as an economic priority.
Reopening shopping spaces, income growth of residents and favourable policies would drive a rebound in consumption in 2023, Wen Bin, chief economist with China Minsheng Bank wrote in a note.
However, factors, including the pandemic-led “scarring effect” and the worsening ageing population issue, will limit the rate of this rebound, Wen wrote, adding that the bank expects retail sales to grow about 9% this year.
On January 8, the country further loosened its Covid-19 management policies, which in turn has enhanced business confidence. UBS economists expect China's economy to grow 4.9% in 2023 while Morgan Stanley has lifted its forecast to 5.7% for the year.
* This article was originally published by CGTN.