China’s economic recovery ‘better than expected’, but coronavirus outbreak, Ukraine crisis impact looms

Retail sales grew by 6.7 per cent in the combined figures for January and February, while industrial production grew by 7.5 per cent from a year earlier

Last week, Premier Li Keqiang confirmed China has economic growth target of ‘around 5.5 per cent’ for 2022 after the economy grew by 8.1 per cent last year

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China’s industrial production, a gauge of activity in the manufacturing, mining and utilities sectors, grew by 7.5 per cent, up from 4.3 per cent growth in December. Photo: AFP

Published: 10:08am, 15 Mar 2022Updated: 7:23pm, 15 Mar 2022

China’s economy made a “better-than-expected” start to 2022 as headline indicators beat expectations, but the recovery is set to be challenged by the worst coronavirus outbreak in two yeas and the protracted Ukraine crisis.

Retail sales grew by 6.8 per cent, year on year, in the combined figures for January and February, compared with 1.7 per cent growth in December. The figure was the quickest since June and beat expectations of a 3.0 per cent increase in a Reuters poll.

Data for January and February is combined to smooth out the impact of the Lunar New Year holiday, which falls at different times during the two months in different years. This year, the week-long holiday started on January 31.

Last week, Premier Li Keqiang confirmed that China had set an economic growth target of “around 5.5 per cent” for 2022 after the economy grew by 8.1 per cent last year.

On Friday, Li also pledged that China will offer up a variety of “oxygen-supplying” measures to help counter risks to economic growth in 2022.

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