China’s gross domestic product grew 4.8% in the three months to March 31 compared with the same period last year, according to data released by the country’s National Bureau of Statistics on Monday. That was quicker than the 4% year-on-year increase the world’s second-largest economy registered in the previous quarter, and also beat the 4.4% growth rate forecast by a Reuters poll of economists.
Nomura analysts estimate that nearly a quarter China’s population, and 40% of the economy, is now affected by full or partial lockdowns.
Chinese Premier Li Keqiang has repeatedly warned in the past week of the threat the upsurge in Covid cases poses to growth and employment. Last Wednesday, he promised more interest rate cuts to boost the economy. Two days later, the People’s Bank of China announced a cut to the reserve requirement ratio — which dictates the amount of cash that banks must hold in their reserves — a move meant to spur lending.
