China revises GDP growth in 2021 from 8.1% to 8.4%

China has revised its economic growth in 2021 compared to the previous year, from 8.1% reported in January to 8.4%, which raises the basis for comparison for this year’s expansion. The Chinese Gross Domestic Product (GDP) reached 114.9 trillion yuan (US$ 16.5 trillion) in 2021, 556.7 billion yuan higher than calculated in January, said this Tuesday (27) the National Bureau of Statistics (NBS).

China usually announces a preliminary calculation of the previous year’s GDP in January and usually revises the results from more comprehensive databases collected by companies. Industry and services are the main drivers of the revision, with data from the agricultural sector almost unchanged, official figures show.

The service sector, which accounts for 53.5% of Chinese GDP, grew 8.5% in 2021 compared to the previous year, above the previously calculated 8.2% increase. Manufacturing and construction, which account for 39.3% of China’s GDP, advanced 8.7% last year, up from 8.2% previously reported.

Until recently, the world’s second-largest economy was grappling with a tough government effort to contain Covid-19 outbreaks, along with woes in the real estate sector and lower global demand for Chinese goods. In the first few months of 2022, China’s economy grew by 3%, which analysts say puts the country on track to fail to meet the annual growth target of “around 5.5%”.

In December, Beijing abruptly reversed its strategy of aiming for zero cases of covid, triggering a nationwide outbreak of infections that puts pressure on the less-equipped health system and undermines business activities. Despite a recent commitment to refocus on boosting the economy next year, analysts have said the current waves of infections across the country will continue to pressure activity. Source: Dow Jones Newswires.