China’s economy returned to active growth after the pandemic

China’s economy increased by 4.5% during the first quarter compared to the same period in 2022, according to the National Bureau of Statistics of the People’s Republic of China. The main factor contributing to the recovery of the economy was the removal of strict anti-COVID restrictions that had been in effect in the country for almost three years.

In 2022, the GDP of China was growing at the slowest pace (comparable to that of the mid-1970s), not least because of the limited capacity of the Chinese consumers. Now the consumers are catching up.

In March, the retail sales increased by 10.6%. This is the most significant growth in two years, exceeding the analysts’ forecasts by more than two times.

The industrial production increased by 3.9% compared to March 2022, which is the highest growth rate in the last five months. The agricultural production increased by 3.6%, the service industry expanded by 5.4%, the retail sales climbed by 5.8%, and the investment in the high-tech industry grew by 16%.

The Chinese government has set a goal of five percent growth by the end of the year, although it is possible that the real growth may be higher.