China GDP beats forecast, but March activity heightens risks to outlook

Data on March activity showed retail sales contracted last month on an annual basis on widespread Covid curbs across the country. It fell 3.5%, worse than expectations for a 1.6% decrease and an increase of 6.7% in January and February.

BEIJING: China’s economic activity slowed in March, with weakness in consumption, property and exports eclipsing faster-than-expected first quarter gross domestic product (GDP) growth, suggesting a worsening in the outlook as sweeping Covid-19 curbs and the Ukraine war take a toll.

The Ukraine crisis has complicated the job of policymakers as it has intensified supply and commodity cost pressures, boosting global inflation sharply and leaving Chinese authorities to walk a tight rope as they try to stimulate growth without endangering price stability.