TM Marlowe Group Report Shows Chinas GDP Growth Faltering

Chinas economic growth encountered a slowdown last year, a report by TM Marlowe Group pointed to a failing property sector and renewed Covid woes as the primary causes.

Tokyo, Japan, February 01, 2022 --( According to data released by the central bank of China, the country’s economy grew at 8.1% for 2021, exceeding government projected targets of 6%, but its growth has decelerated considerably, with GDP experiencing the weakest growth pace in 18 months for the last completed quarter of 2021.

A report by TM Marlowe Group revealed that China’s GDP expanded a mere 4% year on year, well below that which was achieved for the same time span in 2020 (at 6.5%). The 2021 growth figure is just about in line with figures forecast by TM Marlowe Group analysts, who stated that dampening growth towards the end of 2021 suggests that downward economic pressure will persist into 2022.

TM Marlowe Group analysts say the response by the banking sector reflects this sentiment, as the People’s Bank of China slashed the lending rate for the first time since April 2020, adding to a number of quantitative easing measures over the past few months. All of which have occurred concurrent to a massive slowdown in real estate and increased implementation of restrictions and lockdowns as a means of curbing the spread of the virus.

The predominant driver of hampered growth is domestic growth, with consumption at very low levels amid renewed COVID-19 related interruptions due to China’s zero-tolerance and heavy hand when it comes to lockdowns - for example, retail sales grew a mere 1.7% in December on the previous year, in sharp contrast to 3.9% growth for November. Analysts at TM Marlowe Group anticipate that domestic growth will remain under pressure due to demand contractions, supply shocks and plummeting expectations.
TM Marlowe Group
Yu Tanaka