MNI BRIEF: China's Economy Grew 3% In 2022, Misses Govt Target

China's economy grew at a better-than-expected 3% pace in 2022, though it it fell short of the government's 5.5% target and marked one of the lowest growth rates in decades as pandemic control measures weighed heavily on activity, data released by the National Bureau of Statistics on Tuesday showed.

China's GDP increased 2.9% y/y in Q4, or flat compared with a quarter ago, slower than the previous quarter's 3.9% y/y growth but better than the consensus forecast of 1.7% y/y growth. The GDP increase came as China confronted a slowing global economy, domestic pressures from a weaker housing market and softer consumer spending, and the challenges of reopening after three years of pandemic control, NBS said.

Industrial production increased 3.6% in 2022, with December contributing 1.3% y/y gain. The reading beat the consensus forecast calling for growth of 0.3% y/y in December, reflecting a rapid recovery in supply under optimised Covid pandemic controls. Retail sales registered a 0.2% y/y decrease in 2022, surpassing expectations for a 0.7% y/y decline. December consumption, which was tipped to fall 8.0% y/y, fell 1.8% y/y with market sales stable, while sales of basic daily necessities and online retail sales grew rapidly, according to the NBS.

Fixed-asset investment edged down to 5.1% y/y, following November's 5.3% y/y gain and faster than the 5.0% y/y consensus forecast. Property investment fell 10.0% y/y to hit the lowest level year-on-year pace since February 2020, sliding further from the previous 9.8% fall.