<p>China's retail sales slumped to its lowest in over two years while factory output plunged, official data showed Monday, capturing the dismal economic fallout from Beijing's zero-Covid policy.</p>.<p>The world's second-largest economy has persisted with strict virus measures, choking up supply chains as dozens of Chinese cities -- including key business hub Shanghai -- grapple with restrictions.</p>.<p>Officials have vowed to support growth, lowering the mortgage rate for first-time homebuyers and announcing Shanghai's gradual reopening last weekend but observers warn the zero-Covid strategy could mute any positive impact.</p>.<p>The latest cut came Monday when the National Bureau of Statistics (NBS) announced data showing that retail sales shrank 11.1 per cent on-year in April.</p>.<p>It is the biggest slump since March 2020 as Chinese consumers remained cooped up at home or jittery over lingering restrictions.</p>.<p>Industrial production growth also sank 2.9 per cent on-year, reflecting damage from shuttered factories and transportation woes as officials ramped up Covid restrictions last month.</p>.<p>This figure is the weakest since early 2020, and down from 5.0 per cent growth in March.</p>.<p>"In April, the epidemic had a big impact on economic operations," said the NBS in a statement, stressing that the hit would be "short-term".</p>.<p>The weak numbers came as China battles its worst Covid outbreak since the early days of the pandemic.</p>.<p>In April, unemployment similarly rose to levels not seen since early 2020, according to NBS data, as the urban unemployment rate hit 6.1 per cent.</p>
<p>China's retail sales slumped to its lowest in over two years while factory output plunged, official data showed Monday, capturing the dismal economic fallout from Beijing's zero-Covid policy.</p>.<p>The world's second-largest economy has persisted with strict virus measures, choking up supply chains as dozens of Chinese cities -- including key business hub Shanghai -- grapple with restrictions.</p>.<p>Officials have vowed to support growth, lowering the mortgage rate for first-time homebuyers and announcing Shanghai's gradual reopening last weekend but observers warn the zero-Covid strategy could mute any positive impact.</p>.<p>The latest cut came Monday when the National Bureau of Statistics (NBS) announced data showing that retail sales shrank 11.1 per cent on-year in April.</p>.<p>It is the biggest slump since March 2020 as Chinese consumers remained cooped up at home or jittery over lingering restrictions.</p>.<p>Industrial production growth also sank 2.9 per cent on-year, reflecting damage from shuttered factories and transportation woes as officials ramped up Covid restrictions last month.</p>.<p>This figure is the weakest since early 2020, and down from 5.0 per cent growth in March.</p>.<p>"In April, the epidemic had a big impact on economic operations," said the NBS in a statement, stressing that the hit would be "short-term".</p>.<p>The weak numbers came as China battles its worst Covid outbreak since the early days of the pandemic.</p>.<p>In April, unemployment similarly rose to levels not seen since early 2020, according to NBS data, as the urban unemployment rate hit 6.1 per cent.</p>