China’s economy slows sharply as "zero Covid" pummels activity

China’s economy slows sharply as

PanARMENIAN.Net - China’s economy slowed sharply in April as Beijing’s ultra-strict “dynamic zero Covid” strategy dragged consumption and industrial production to their lowest levels since early 2020, Al Jazeera reports.

The deteriorating economic picture comes as authorities have imposed full or partial lockdowns on dozens of Chinese cities, including the financial capital Shanghai, where more than 25 million residents have been under severe restrictions since late March.

With millions of Chinese confined to their homes, retail sales last month dropped 11.1 percent compared with the previous year, sharply worse than March’s 3.5 percent contraction, data from the National Bureau of Statistics showed on Monday.

The figure marked the biggest decline since March 2020.

As lockdowns forced factories to suspend operations and disrupted supply chains, industrial production fell 2.9 percent from a year earlier, compared with a 5 percent gain in March, marking the largest decline since February 2020.

China’s job market also took a hit, with the nationwide jobless rate rising to 6.1 percent in April, up from 5.8 percent, marking the highest rate since February 2020.

The poor figures pour doubt on Beijing being able to meet its ambitious target of 5.5 percent growth in 2022 and are likely to fuel fears of the world’s second-largest economy contracting this quarter.

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