Since the COVID-19 outbreak began in the second quarter, China's economy has grown at the slowest rate, underscoring the harsh economic costs of Beijing's strict "dynamic zero COVID" plan.
According to official figures released on Friday, the world's second-largest economy only grew by 0.4 percent from April to June as lockdowns around the nation slowed consumer spending and industrial output.Since the first quarter of 2020, when China's GDP contracted 6.9 percent as a result of the first COVID-related lockdowns in the city of Wuhan, the meager expansion was the worst performance.
The outcome, which fell far short of market forecasts, comes as concerns about a possible global recession are growing as the outlook for growth is clouded by the conflict in the Ukraine, supply chain disruptions, and rising interest rates.
According to Carlos Casanova, senior economist for Asia at UBP in Hong Kong, "the data was weaker than predicted, with most experts expecting about 1 percent." Casanova made this statement to Al Jazeera.
"We were below consensus, as we expected the collapse in China's housing industry to drag on aggregate demand, decreasing the chance of a faster rebound in consumption in June," the article states.Casanova predicted that growth would be below 4% in 2022.
Despite the subpar overall performance, both retail sales and industrial output had significant upturns.
According to figures released on Friday, industrial output increased by 3.9 percent in June as compared to a year earlier, up from 0.7 percent in May.
Retail sales increased by 3.1 percent, exceeding experts' expectations and marking the fastest expansion in four months.Compared to a 6.2 percent increase from January to May, fixed-asset investment, which comprises investments in real estate, land, and machinery and equipment, increased by 6.1 percent in the first half of the year.
A "zero COVID" strategy that aims to eradicate the virus at nearly any cost resulted in the lockdown of major cities in March and April, including the commercial metropolis Shanghai.Although many of the strictest restrictions have since been abolished, new ones that would effect millions of people have just been implemented in Xian, Lanzhou, Haikou, Macau, and Anhui province.
Chinese President Xi Jinping has pledged to uphold the nation's zero-tolerance policy despite the growing economic and social costs, highlighting the need to "put people and lives at the forefront."
For 2022, China has set an economic growth goal of around 5.5 percent, which most experts predict Beijing would find difficult to achieve.
According to Alicia Garca-Herrero, chief Asia Pacific economist at Natixis in Hong Kong, "Given the second quarter data, it is highly possible that the Chinese government needs to cut its annual aim, as it needs more than 8 percent growth for the second half to achieve the 5.5 percent target."
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