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China posts 4.8% GDP growth in Jan-March quarter but challenges remain

China's GDP grows at 4.8% in the first quarter of 2022

China, which has been hit by the resurgence of the Covid 19 infections, registered a 4.8 per cent GDP growth in the January to March quarter of this year.

China’s foreign ministry said that the country’s economic growth continued to “sustain the momentum of recovery and development.” “Major macro indicators remained within an appropriate range,” Wang Wenbin, spokesperson of the ministry said at the press conference.

However, challenges remain amid the ongoing stringent lockdown in Shanghai which is currently the Covid 19 hotspot.

An analyst said that the financial impact of the lockdown will be felt in the next quarter.

The share of Shanghai's economy in China's total GDP amounts to more than 3.5 per cent. According to Statista, in 2021, GDP of Shanghai municipality stood at about 4.32 trillion yuan.

China had set a GDP growth target of 5.5 per cent for 2022 after registering an expansion of 8.1 per cent in 2021.

Beijing is already looking at announcing several ways to support economic growth.

The country’s central bank– People’s Bank of China (PBOC) is set to come out with a host of monetary policy measures including reduction in key policy rates.

“The authorities in China are aware of the problem, there are concerns over slowing economic growth. Major steps will be taken to support the economy and we can expect more money to pour into the system,” Aravind Yelery, senior research fellow at the Peking University and visiting faculty at Fudan University in Shanghai told India Narrative earlier.

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