China’s economy grows 8pc in 2021

China's economy expanded at its fastest pace for 10 years in 2021, according to an AFP poll of analysts, but its strong recovery from the Covid-19 pandemic is threatened by Omicron and a property sector slowdown.

The eight percent growth would be well above the government's target of more than six percent, and comes on the back of a strong start to the year as a "zero-Covid" policy allowed the country to lead the global economic recovery.

China's exports surged nearly 30 per cent last year on solid global demand as countries reopened from pandemic lockdowns, boosting its stuttering economy.

But the country's recovery in the second half of 2021 was hobbled by a series of outbreaks -- with officials reimposing strict containment measures -- as well as power outages caused by an emissions-reduction drive, supply chain problems and surging energy costs.

While the forecast marks a healthy annual tick -- up from 2.3 per cent in 2020 -- those issues put a dampener on factory activity and led to businesses shuttering.

They were compounded by a crackdown on debt in the property sector, which accounts for a huge part of the economy. "Key factors... were the impact of power shortages, the residential construction sector slowdown and moderating retail sales," said Rajiv Biswas, Asia-Pacific chief economist at IHS Markit.

The analysts tipped growth of just 3.5 per cent on-year for the fourth quarter, down from 4.9 per cent the previous three months and 7.9 per cent from April-June.

And headwinds from the construction sector slowdown, as well as the impact of Covid measures on consumer spending, will likely pose a "significant drag" on growth this year, Biswas added.