default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

China’s Q1 GDP Tops Expectations, March Retail Sales Fall

The exterior of Shanghai's new JC Plaza development, in the downtown shopping district of Nanjing Xi Lu.
The city of Shanghai has been almost completely locked down for almost three weeks, and more economic fallout is expected. (Yang Renkai)

Chinese consumption took a hit last month as Covid-19 curbs began to bite, with retail sales declining for the first time in two years.

In a data dump Monday, China’s National Bureau of Statistics (NBS) said the country’s gross domestic product (GDP) expanded by 4.8 percent, beating analysts polled by Reuters, who had expected a gain of 4.4 percent.

Data for March showed retail sales contracting the most on an annual basis since April 2020, falling 3.5 percent year-on-year, worse than expectations for a 1.6 percent decrease and coming off an increase of 6.7 percent for the months of January and February combined (data for January and February are often bundled together in China because the period coincides with the Lunar New Year holidays).

“We will step up the implementation of macro policies, make every effort to stabilise the economic fundamentals, and strive to achieve the targets and tasks for the year,” NBS spokesperson Fu Linghui told a press conference.

Learn more:

China’s Booming Luxury Market Won’t Be Smooth Sailing in 2022

As repatriation of luxury spend continues in 2022, domestic sales in China are expected to surpass 2019 levels by 90 to 110 percent, but that doesn’t mean brands can rest on their laurels amid economic headwinds and government crackdowns.


In This Article
Topics

© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from China
On-the-ground intelligence and insights from the world’s largest fashion market.

Chinese celebrities made a comeback at the European shows this season, but the brands hosting them see the country’s A-listers as more high-risk, high-reward than ever amid fresh scandals and tightening government regulation.




view more

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Complete Guide to Managing Markdowns
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy and Accessibility Statement.
The Complete Guide to Managing Markdowns