China growth risks worsen with omicron..?

 The world's leading economy, china saw slower growth in the fourth quarter due to Corona. China's economy is projected in future to grow by 8.1% in 2021. However, amid a continuing growing Omicron impact, the economy slowed slightly to 4% in the 4th quarter amid the recession. This trend is expected to continue even in the coming quarters. It had grown around 4.9% in the previous quarter. The slight slow growth rate in the last quarter was due to the recession in the real estate sector and the economy was under pressure.
Meanwhile, the recent pressure on the real estate sector has seen a decline in the overall growth rate. china also experienced a severe power outage due to the shortage of coal. Thus production in the industrial sector was severely affected. As the impact of Omicron is currently increasing in china, strict lockdown and many restrictions have been increased. Meanwhile, also retail sales data fell to 1.7 in December.

This impacts the GDP growth in the coming quarter. The lower interest rates on medium-term loans are expected to give a boost to the industry. It is also said that china has cut interest rates, while other banks in the international arena have been raising interest rates.

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china growth rate reduces

Sowmiya Sriram

19/01/2022 05:42 PM