by Matt Phillips and Bethany Allen-Ebrahimian
April 19, 2022
https://www.axios.com/authors/baebrahimian
Introduction:
(Axios) The largest single driver of global economic growth — China — is stalling as its "zero COVID" policy collides with a massive virus outbreak and large-scale lockdowns.
Why it matters: Many are focusing on inflation and the war in Ukraine, but the path of the world economy and global financial markets this year largely hinges on China's economic and public health.
Driving the news: A slew of Chinese economic data out Monday confirmed that the world's second-largest economy has sputtered as the government combats the worst outbreak of COVID so far on the mainland.
- Retail sales tumbled 2% during March. Compared to March 2021, retail sales were down 3.5%, the worst annual drop since 2020.
- The country's unemployment rate rose to 5.8%, above the government's target of 5.5% and the worst since May 2020, when the country was first emerging from lockdowns after the initial virus outbreak in Wuhan.
- Industrial production slowed sharply in March, as did investment in the domestic real estate sector, which has been a key driver of the country's growth.