China’s economic growth accelerated to 4.8% year-on-year in the first quarter of 2022 from the previous quarter, data from the State Statistics Office (SSO) of the People’s Republic of China showed. China’s GDP grew 4% in the fourth quarter of 2021.

The pace of GDP increase, despite strict quarantine restrictions imposed in the country in March, surpassed experts’ consensus forecast of 4.4%, Trading Economic noted

The PRC economy expanded by 1.3% in January-March compared to the previous three months (1.5% in the fourth quarter). Analysts’ consensus forecast called for growth of 0.6%.

The GSA said in a statement that the Chinese economy continued to grow in the first quarter despite numerous challenges both at home and abroad.

The “zero-tolerance” policy of COVID-19 in the PRC has limited production and consumer spending domestically. Meanwhile, the Russia-Ukraine conflict and sanctions imposed on Russia have caused energy, metals and wheat prices to spike and further undermined global supply chains.

Housing sales in China fell 25.6% in the first quarter from a year earlier, while new construction fell 17.5%.

Many economists are skeptical that Beijing can achieve its goal of 5.5% GDP growth in 2022 as demand for Chinese exports in the U.S. and Europe weakens amid decades of record inflation, The Wall Street Journal noted.

Overall, Chinese GDP grew 8.1% in 2021, exceeding the country’s authorities’ target of “above 6%.” In 2020, the country’s economy grew by 2.2%.