China’s GDP growth slowed to 2.9% yoy in Q4, down from Q3’s 3.9% yoy but beat expectation of 1.8% yoy. For 2022 as a whole, GDP grew 3.0%, sharply lower than 2021’s 8.4%, but was better than 2020’s 2.2%. That’s still the second worst on record nonetheless.
In December, industrial production rose 1.3% yoy, above expectation of 0.3% yoy. Retail sales declined -1.8% yoy, much better than expectation of -9.5% yoy. Fixed asset investment grew 5.1% ytd yoy, above expectation of 5.1%.
“The foundation of domestic economic recovery is not solid as the international situation is still complicated and severe while the domestic triple pressure of demand contraction, supply shock and weakening expectations is still looming,” NBS said in a release.
Also released, China’s population decreased by -850k in 2022, the first contraction in more than six decades. Birthrate was at 6.77 births per 1000 people, sharply down from 2021’s 7.52 births, and marked the lowest level on record. Death rate rose from 7.18 to 7.37 per 1000 people, highest since 1976.
BoJ keeps yield cap unchanged, downgrades growth forecast
BoJ kept the yield curve control unchanged today, disappointing some who bet for a tweak. Short term policy interest rate is held at -0.10%. The central will continue to purchase JGBs, without setting an upper limit, to keep 10-year yield at around 0%. The range 10-year JGB yield allowed to fluctuate is also kept at around plus and minus 0.50%. The decision was made by unanimous vote.
In the Outlook for Economic Activity and Prices:
Full statement here.
Full Outlook for Economic Activity and Prices.