China’s economy experienced its best growth in a decade in 2021, bouncing back from a pandemic-hampered 2020, reports Reuters. The growth was boosted by robust exports, but a property slump and weakening consumption indicate a slowing in momentum and the need for increased policy support.
The economy grew 8.1% last year—its best expansion since 2011—and faster than a forecast 8.0%. The pace was well over a government target of “above 6%” and 2020’s revised growth of 2.2%. The economy recorded its weakest growth in 44 years in 2020 but staged a faster recovery than other major economies.
Growth in the fourth quarter of 2021 hit a one-and-a-half-year low, government data showed on Monday shortly after the central bank moved to prop up the economy with a cut to a key lending rate for the first time since early 2020. The world’s second-largest economy is struggling with a rapidly cooling property sector, as well as sporadic small-scale COVID-19 outbreaks that could deal a blow to its factories and supply chains.