China's GDP Growth Slows

China’s gross domestic product grew at 3% in 2022, according to data released yesterday, down from an 8.1% rate in 2021 and below the government target of 5.5%. It marks the second slowest pace since the 1970s, as the world’s second-largest economy struggled under strict COVID-zero policies and a decline in the real estate market.

The economy grew 2.9% in the fourth quarter as China relaxed its COVID-19 policies, which had stunted retail sales and disrupted production. Unemployment remains a concern, with the urban jobless rate at 5.5%. To help stimulate a recovery, China has eased its crackdown on the technology sector and is relaxing restrictions on real estate developers. Economists predict close to 5% growth in 2023.

Separately, the country's population shrank in 2022 for the first time since the 1960s, with 1.4 billion people at the end of last year, 850,000 fewer than at the end of 2021.