China Reports 4.5% GDP Growth In Q1 2023, Economy Rebounds After Covid-19 Curbs Relaxed

In December, China abandoned its zero-COVID policy after mass street protests.

In 2022, China's GDP expanded by just 3%. ( Image Source :Getty )

China has reported a strong start to its economy in 2023 following the lifting of strict coronavirus pandemic restrictions that were in place for three years. According to China's National Bureau of Statistics, the country's gross domestic product (GDP) grew by 4.5% in the first quarter of the year compared to the same period in 2022.

Last year, China's GDP expanded by just 3%, falling short of the official growth target of "around 5.5%". This was due to the disruptions caused by the country's approach to tackling the COVID-19 pandemic, which wreaked havoc on supply chains and hit consumer spending, according to a CNN report.

In December, China abandoned its zero-COVID policy after mass street protests and local government cash shortages made it untenable. Following a brief period of disruptions due to a surge in COVID-19 cases, the country's economy has started to show signs of recovery.

At last month's meeting of the National People's Congress, the government set a cautious growth plan for this year, with a GDP target of around 5% and a job creation target of 12 million.

US India's Biggest Trading Partner, China At Second Position

Provisional data from India's commerce ministry has shown that the US has become India's top trading partner in the 2022-23 fiscal year, reflecting the growing economic relationship between the two countries. Bilateral trade between India and the US increased by 7.65 per cent to USD 128.55 billion in 2022-23, up from USD 119.5 billion the previous year, and USD 80.51 billion in 2020-21.

India's exports to the US rose by 2.81 per cent to USD 78.31 billion in 2022-23, while imports grew by around 16 per cent to USD 50.24 billion, according to the data.

In contrast, India's two-way commerce with China declined by approximately 1.5 per cent to USD 113.83 billion in 2022-23, compared to USD 115.42 billion the previous year. Exports to China fell by roughly 28 per cent to USD 15.32 billion in 2022-23, while imports increased by 4.16 per cent to USD 98.51 billion.

The trade gap with China widened to USD 83.2 billion in 2022-23, from USD 72.91 billion in 2021-22.