During the fourth quarter of 2021, China recorded a positive GDP growth rate for the seventh consecutive quarter, increasing to a rate of 4.00%. In terms of inflation, the CPI recorded a year-on-year growth rate of 1.77%, accelerating from the rate observed in the previous quarter. Regarding the labor market, the unemployment rate increased slightly to a rate of 3.96%. During the fourth quarter of 2021, the Chinese Renminbi experienced an appreciation of 0.08 RMB/$ against the dollar, and stood at 6.38 RMB/$.

Macroeconomic outlook report: China 4Q21

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Macroeconomic overview

  • China's year-on-year GDP growth rate consolidated the recovery started in 2Q20, despite the fact that the year-on-year GDP growth rate contracted by 0.90 p.p. compared to 3Q21, and stood at a rate of 4.00%.
  • During 4Q21, growth was dampened by Covid-19's zero-tolerance policy that slowed the recovery of consumption, caused the collapse of the real estate sector, and the ongoing regulatory storms by the Chinese government.
  • During the fourth quarter of 2021, the unemployment rate increased by 0.08 p.p. compared to 3Q21 to 3.96%.
  • The RMB appreciated against the US dollar during 4Q21, reaching an average exchange rate of 6.38 RMB/$, representing an appreciation of 0.08 RMB per dollar compared to the previous quarter.
  • Regarding inflation, CPI growth registered an increase of 0.94 p.p. compared to the previous quarter, up to a growth rate of 1.77% during 4Q21.

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