China's economy recorded a year-on-year growth of 4.8% in the first quarter, below the target set by Beijing, at a time when the spread of covid-19 outbreaks is resulting in the confinement of major industrial centers.

According to a statement quoted by the Lusa news agency, growth accelerated from the 4% pace reached in the previous quarter when the Chinese government restricted access to credit by the country's vast real estate sector.

Growth in the January-March period was, however, below the official target of "about 5.5%," stipulated by the Chinese Communist Party for this year, and which analysts point out is difficult to achieve unless the government goes ahead with major stimulus.

Spending in the retail and manufacturing sectors, and investment in factories, real estate and other fixed assets, increased.

"The recovery of the national economy was sustained and the management of the economy was generally stable," Fu Linghui, spokesman for China's National Bureau of Statistics (NSO), pointed out in a statement.

However, retail sales, a gauge of consumer spending, fell 3.5% in March, the first contraction since July 2020 as authorities tightened anti-pandemic measures aimed at combating the country's most severe outbreak in more than two years.

The city, which is China's financial center and home to one of the world's busiest ports, remains virtually isolated, with its 25 million residents banned from leaving their homes.

The outbreak erupted at a precarious time for China's economy following a debt crisis in the real estate sector during the second half of 2021.

The target of 5.5% for 2022 is the lowest in three decades.

Source: Lusa