China’s economic growth edged up to a still-weak 4.8% over a year earlier in the first three months of 2022 as a wave of coronavirus outbreaks led to shutdowns of major industrial cities.
FILE - People wearing face masks shop clothing during a promotion New Year sale at a mall in Beijing on Jan. 16, 2022. Chinas economic growth edged up to a still-weak 4.8% over a year earlier in the first three months of 2022 as spreading coronavirus outbreaks prompted shutdowns of major industrial cities. – China’s economic growth edged up to a still-weak 4.
The slowdown hurts China's trading partners by depressing demand for oil, steel, consumer goods, food and other imports. Oil prices, which spiked after Russia’s attack on Ukraine, have fallen back somewhat on expectations Chinese consumption will weaken.The flow of industrial goods has been disrupted by the suspension of access to Shanghai, a business center with 25 million people, and other industrial cities. Global automakers and other manufacturers have reduced or stopped production.
Retail spending, factory output and investment in factories, real estate and other fixed assets rose. Forecasters say Beijing is moving cautiously and using targeted stimulus measures instead of across-the-board spending. Chinese leaders worry that might push up politically sensitive housing costs or corporate debt they worry is dangerously high.
The agency that runs the Shanghai port says operations are normal. But companies say the volume of cargo it handles has fallen.