China’s Surprise Growth Burst Likely Short-Lived as Covid Spikes

China’s economy had a stronger-than-expected start to the year but the outlook remains grim as the nation battles its worst Covid outbreak since Wuhan two years ago and Russia’s invasion of Ukraine throws global financial markets and energy prices into turmoil.

Consumer spending on shopping and eating-out and investment by state-owned companies grew strongly in the first two months of the year, official data showed Tuesday. That was before the country began recording large-scale omicron virus outbreaks and locking down major cities like Changchun and Shenzhen. Industrial production of products such as cars surged but a slump in the housing market persisted.