(NBS) China’s economy expanded by 4% in the fourth quarter of 2021 from the prior year, faster than the projected growth of 3.6%.
For the full year 2021, the economy grew by 8.1%, lower than the forecasted 8.4%.
Industrial production also grew at a faster rate of 4.3% in December from the prior year, more than the projected 3.6%. Auto production was up 3.4%, the first gain since April.
Manufacturing investment posted a 13.5% increase in 2021 from the prior year, with special-purpose machinery leading at 24.3%.
Fixed asset investment increased by 4.9% in 2021, a better than expected gain of 4.8%. Real estate investment was up 4.4%, as infrastructure saw a 0.4% growth.
The robust growth happens despite a slower 1.7% growth in retail sales, which missed the expected 3.7%. Retail sales grew by 12.5% in 2021 from the previous year, when the economy experienced a contraction.
The National Bureau of Statistics warned of weak domestic demand, supply shocks, and an uncertain external environment. Goldman Sachs expects China’s zero-Covid policy to affect business activity, with other analysts projecting a fall in consumer spending.
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