Macro Snapshot — China’s economy should continue to recover; Moroccan GDP growth lower than forecast

RIYADH: Morocco’s gross domestic product growth is below previous forecasts, China’s economy slowed in March and Spain is due to revise its 2022 GDP target. faster rates, the mayor announcing 200,000 jobs threatened by the departure of foreign companies. The Chinese economy is expected to continue its recovery trend this year; the country’s retail spending fell 3.5% and its industrial production, on the other hand, rose 5.0%.

Morocco’s GDP growth

Morocco’s GDP growth is expected to average between 1.5% and 1.7% in 2022, down from the 3.2% projected in the finance law, the official MAP news agency reported. quoting Prime Minister Aziz Akhannouch.

China’s Q1 GDP beats forecast

China’s economy slowed in March as consumption, real estate and exports were hit hard, tarnishing faster-than-expected first-quarter growth figures and worsening an outlook already weakened by COVID-related restrictions -19 and the war in Ukraine.

The biggest near-term challenge for Beijing is tough new coronavirus rules at a time of heightened geopolitical risks, which have intensified pressures on commodity supply and costs. The Chinese authorities are therefore walking a tightrope trying to stimulate growth without jeopardizing price stability.

GDP rose 4.8% in the first quarter from a year earlier, data from the National Bureau of Statistics showed Monday, beating analysts’ expectations of a 4.4% gain and rising 4, 0% in the fourth quarter.

A surprisingly strong start to the first two months of the year improved the numbers, with GDP up 1.3% in January-March quarter-on-quarter, compared to expectations of a 0.6% rise and a revised gain of 1.5% in the prior quarter.

Analysts say April data is likely to be worse, with shutdowns in Shanghai’s mall and elsewhere dragging on, prompting some to warn of rising recession risks.

Moscow mayor says 200,000 jobs at risk as foreign companies leave

About 200,000 people are at risk of losing their jobs in the Russian capital because foreign companies have suspended their activities or decided to leave the Russian market, Moscow Mayor Sergei Sobyanin said on Monday.

Moscow authorities are ready to support people who have lost their jobs by providing them with training and temporary and socially important work, Sobyanin wrote on his blog.

Russia signals faster rate cut

The Central Bank of Russia should be able to lower its key rate more quickly and create the conditions for more affordable loans, Governor Elvira Nabiullina said Monday.

The central bank more than doubled its benchmark rate to 20% when Russia was hit by international sanctions, after sending forces to Ukraine in February, but then cut it this month to 17%, signaling a difficult economic environment and a slowdown in inflation. .

Spain to lower its GDP target for 2022

Spanish Prime Minister Pedro Sanchez (Shutterstock)

Spain will revise its economic growth target for 2022 downwards, Prime Minister Pedro Sanchez said in a television interview on Monday.

The government is expected to update its bullish 7% growth projection for 2022 later this month to take into account the impact of inflation fueled by Russia’s invasion of Ukraine.

“There will be a downward revision of the growth figures in Spain, in Europe and in the world, it is a fact, but that does not mean that Spain will not continue to grow and create jobs”, Sanchez told the Antena3 TV channel.

The Bank of Spain expects gross domestic product to grow by 4.5% in 2022.

China’s economy expected to remain in recovery in 2022

China’s economy is expected to remain on its recovery trend this year, and Beijing will step up macroeconomic policy implementation to stabilize the outlook, Fu Linghui, spokesperson for China’s statistics bureau, told a conference. press Monday.

China will be able to contain COVID-19 outbreaks and control consumer price hikes, Fu said.

Chinese industrial production up in March

Chinese industrial production rose 5% in March from a year earlier. That was down from a 7.5% increase seen in the first two months of the year, data from the National Bureau of Statistics showed on Monday.

The reading was stronger than a 4.5% rise forecast by analysts in a Reuters poll.

Retail sales in March contracted 3.5% year-on-year amid rising COVID-19 outbreaks and lockdowns, after rising 6.7% in January and February. The figure was well below expectations for a decline of 1.6%.

Capital investment rose 9.3% year-on-year in the first quarter, down from an 8.5% increase reported by the Reuters poll, but down from 12.2% growth in the first two month.

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