International Business: Covid expected to hit China economic activity in March data – Gulf Digital News

International Business: Covid expected to hit China economic activity in March data – Gulf Digital News

China is expected to report a sharp deterioration in economic activity in March as Covid-19 outbreaks and lockdowns hit consumers and factories, although first-quarter growth may have perked up due to a strong start early in the year.

Data on Monday is expected to show gross domestic product (GDP) grew 4.4 in January-March from a year earlier, a Reuters poll showed, outpacing the fourth-quarter's 4.0% pace due to a surprisingly solid start in the first two months.

But on a quarterly basis, GDP growth is forecast to fall to 0.6% in the first quarter from 1.6% in October-December, the poll showed, pointing to cooling momentum.

Separate data on March activity, especially retail sales, is likely to show an even sharper slowdown, analysts say, hit hard by China's strict efforts to contain its biggest Covid outbreak since the coronavirus was first discovered in the city of Wuhan in late 2019.

Analysts say April readings will likely be worse, with lockdowns in commercial centre Shanghai and elsewhere dragging on. Some economists say the risks of a recession are rising.

The government is due to release the Q1 and March figures on Monday at 0200 GMT, with investor speculation mounting over whether there will be more moves to