China’s National Bureau of Statistics (NBS) reported today that China’s gross domestic product (GDP) grew 8.1% year-on-year in 2021. But due to renewed COVID outbreaks in the country, growth slowed down at the end of the year.
That said, China’s GDP grew by only 4% in 4Q21 as the outlook for the final quarter of the year was overshadowed by renewed local COVID outbreaks. Some major commercial cities such as Tianjin and Xi’An reported local COVID cases. In the previous quarter, growth was still at 4.9%.
Goldman Sachs lowered its forecast for China’s economic growth in 2022 from 4.8% to 4.3%, saying the Chinese government is having greater difficulty containing the spread of the virus. As the Chinese government continues to pursue a zero COVID policy, further lockdowns in China are expected.
The economy is expected to pick up after the first quarter of 2022.