China's Economy on the verge of collapse, Corona put brakes on the economy after 40 years

China's economic growth rate fell to three percent last year due to the widespread spread of Corona and the pressure of real estate recession. China's economy has been badly affected by the restrictions that have kept millions of people locked in their homes. However, now after the removal of restrictions, it is gradually improving. The World Bank projects that China's GDP will grow by 4.3 percent in 2023, although this is still below expectations.

Growth in the world's second-largest economy fell to 2.9 per cent in December, according to government data. According to the report, economic activity is resuming in China, but cautious consumers are slowly returning to shopping malls and restaurants. Meanwhile there has been a rise in COVID-19 infections. The government says it appears the peak of that wave has passed.

In 2021, China's economy had grown at a rate of 8.1 percent. Now it has fallen by more than half. This rate is already very low compared to 2021 performance. The government had set a target of 5.5 per cent. China's National Bureau of Statistics said China's economy grew 2.9 percent year-on-year in the fourth quarter, compared with 3.9 percent in the third quarter. The figures released on Tuesday are China's worst growth figures since 1976 when the Chinese economy shrank 1.6 percent. The economy saw a sharp decline in 2020 following the death of Mao Zedong and the emergence of the coronavirus in Wuhan in late 2019.