China’s economy expanded 3% in 2022, below the government’s target

Hong Kong () China’s economy expanded 3% in 2022, well below the government’s target, the country’s National Bureau of Statistics said Tuesday.

It also represents one of the worst performances for the Chinese economy in nearly half a century.

But economic growth was 2.9% in the fourth quarter, exceeding market expectations. A Reuters poll of economists had previously estimated an expansion of just 1.8%.

“China’s economy probably bottomed out in December,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management. “For many cities in China, the peak of the first wave [de brotes de covid] it probably already happened. High-frequency indicators, such as the traffic congestion index, rebounded sharply in January.”

The statistics office also revealed that China’s population declined. The country had 1,411.8 million people in 2022, up from 1,412.6 million in 2021. Analysts said the decline was the first since 1961.

“It is likely that the population will have a downward trend in the coming years. This is very important, with implications for potential growth and domestic demand,” Zhang said.