According to the data from the National Bureau of Statistics of China, last year, the country’s economy fully recovered and reached a record high growth pace. While most countries cannot cap the ongoing decline in their economic indicators, China’s economic activity is performing miracles.
In 2021, which was really lean for the whole world, China’s GDP growth rate accelerated to 8.1%, hitting the highest level last seen 10 years ago. Notably, a rise was recorded in every sector. Thus, the manufacturing sector increased by 8.2%, agricultural sector – by 7.1%, and services sector – by 8.2%. Ordinary people also felt this trend since the nominal income per capita jumped by 9.1% reaching 35,128 yuan that is approximately $5,500. Now, in the rural area, income totals $2,800, whereas in cities, it is $7,500. Notably, the surge in the nominal income per capita surpassed the inflation growth.
Data from the National Bureau of Statistics of China is the best proof that China’s authorities chose the best approach during the pandemic. Last year, the Chinese economy showed good performance, but it is too early to relax. The fact is that the country’s economy may still face such risks as lower consumer spending, supply disruptions, and pessimistic expectations.
The Chinese authorities are also concerned about a decline in consumer activity that may have a negative effect on domestic demand. In addition, the country is suffering from the property sector crisis caused by almost a bankrupt state of China’s largest developer Evergrande and big debts of other firms. That is why the key goal of both the local authorities and various companies is to create conditions that will allow people to actively spend their salaries and savings.
