China Spending, Employment Hit Amid Lockdowns

Date: 18 April 2022 - 21:43

News ID: ۱۰۱۷۷۵

BEIJING (Dispatches) - China’s consumer spending fell and unemployment rose last month as COVID lockdowns confined millions of people to their homes, official figures show.
Joblessness reached the highest level since the early part of the pandemic.
However, overall the country’s economy grew at a faster pace than expected in the first three months of this year.
A surge in infections has triggered lockdowns in several major cities - including the financial, manufacturing and shipping hub of Shanghai.
Retail sales fell by 3.5% in March compared to a year earlier, China’s National Bureau of Statistics said. That was the first decline since July 2020.
For the same period unemployment rose to 5.8%, the highest level since May 2020.
The figures highlight the increased risk of a sharp slowdown in the coming months as major lockdowns and the war in Ukraine take their toll on the world’s second largest economy.
As a whole, China’s economy grew at a better-than-expected rate in the first three months of the year.
Gross domestic product (GDP), a key economic indicator, expanded by 4.8% compared to a year earlier, beating analysts’ forecasts.
However, that is below Beijing’s goal of growing its economy by 5.5% this year.
Tommy Xie, head of Greater China research at OCBC Bank, said that the lockdowns, which began in the second half of March, were so far having a “limited” impact but he expects the restrictions to be a significant drag on economic growth this month.
On Friday, China’s Ministry of Industry and Information Technology said it would help more than 600 companies in Shanghai to restart operations. They included firms in the computer chip, car making and medical industries.
The regulator said it has sent a team to the city “to ensure the supply of medical supplies and promote key industries”.
Manufacturers, including Pegatron a major producer of Apple’s iPhone, have halted operations in Shanghai because of the lockdown.

Asian Shares Sink

Shares were lower in Asia after China reported Monday that its economy expanded at a 4.8% annual pace in January-March.
Benchmarks fell in Tokyo, Seoul and Shanghai. Hong Kong and Sydney were closed for holidays. Oil prices rose and U.S. futures were lower.
Wall Street benchmarks declined last week before closing for the Easter holiday.
China’s growth has fallen well below the official target of 5.5% for 2022. In quarterly terms the economy grew 1.3% in the first quarter, compared with 1.4% in the last quarter of 2021.