China's GDP grew at 4.8% in Q1 amid COVID-19 surge

The country's gross domestic product grew 4.8% year on year during January to March, picking up pace from a 4% increase in the fourth quarter last year.

China's economy grew at 4.8% in the first quarter, falling below the 5.5% target set for this year by the ruling Communist Party, amidst a surge in COVID-19 cases which prompted top business hubs like Shanghai to enforce prolonged lockdowns.

The country's gross domestic product grew 4.8% year on year during January to March, picking up pace from a 4% increase in the fourth quarter last year, data from the National Bureau of Statistics (NBS) showed on Monday.

The world's second largest economy posted a stable performance with continued recovery as China balanced the epidemic control and economic and social development, NBS spokesperson Fu Linghui said at a press conference.

After a strong rebound in 2021, China witnessed some unexpected challenges at the beginning of this year, with a volatile global situation and multiple sporadic COVID-19 outbreaks on the domestic front, he said.

The downward economic pressure is on the rise and some major indicators have seen slower increases, Mr. Fu said.

"But the long-term economic fundamentals remain sound and the continued momentum of economic recovery has not changed," Mr. Fu said, adding that the country is confident and capable of overcoming these difficulties.

A breakdown of Monday's data shows that value-added industrial output posted a stable 6.5% increase from a year ago in the first quarter, and fixed-asset investment jumped 9.3%. Retail sales of consumer goods went up 3.3%.