China’s economic growth is slowing as GDP data show Xi Jinping’s Zero-COVID policy Hammered the economy.
The National Bureau of Statistics of China announced that the country’s GDP by 3% in 2022. Falling significantly short of the 5.5% increase expected by Chinese officials. The data revealed the impact of the government’s zero-COVID policy. The GDP data, released early Tuesday in China, revealed a decline from the 8.1% increase in GDP reported for 2021.
During the pandemic, China’s leader Xi Jinping implemented a strict program of lockdowns to curb the spread of COVID-19. However, he relaxed this policy following a wave of protests last year.
Economists are now assessing how the quick reopening of China’s economy, the second largest in the world after the United States, aligns with the global economic slowdown. The looming question is if the Re-opening of Chinas Economy will create enough of a spike in GDP to make up for lost ground over the last 2 years. Moreover, how the re-opening will impact an already stressed supply chain, and increasing demand on products that could add to increasing prices.
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