China’s real estate sector shrank 5.1% year-on-year in 2022, value-added data from the National Bureau of Statistics showed on Wednesday, increasing pressure on authorities to revive the sector in 2023.
The value added in the industry was 7.2% lower in the fourth quarter than in the previous year, after a 4.2% annual contraction observed in the third quarter, according to data from the agency.
The numbers indicate that the real estate sector was one of the biggest problems for the Chinese economy last year.
China’s economic growth in 2022 has fallen to one of the weakest rates in nearly half a century, hit by a slump in the real estate market and tight measures from the Covid-19 pandemic and outbreak that hit the second and fourth quarters particularly hard.
Authorities have launched a series of cost-effective measures to help homebuyers and builders and ease a long-standing liquidity squeeze in the sector that has delayed the completion of many housing projects.
Despite that effort, home investment in 2022 was still 10% lower than in 2021, the first drop since records began in 1999, and home sales fell by the most since 1992, the agency showed on Tuesday. .
Source: CNN Brasil
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