China's economy grew strongly last year - but growth slowed down significantly towards the end of the year.

At the same time, the birth rate in the world's most populous country has fallen to a record low.

Growth in gross domestic product for the whole of 2021 was 8.1 percent. In the fourth quarter, however, it was only four percent compared to the same quarter in the previous year.

This is shown by data from the Chinese statistical authority this Monday.

A spokesman for the statistics agency warned that the domestic economy was "under the triple pressure of a demand slowdown, a supply shock and weakening expectations".

China's industrial production grew 9.6 percent for the full year.

In December it was officially only 4.3 percent, but analysts had expected an even sharper slump.

Chinese retail, which is seen as a symbol of consumption, recorded a growth of only 1.7 percent in December compared to 3.9 percent in November.

The Chinese central bank is reacting to the less dynamic economic development in the country and is reducing two key interest rates.

The People's Bank of China announced in Beijing on Monday that the interest rate for one-year refinancing operations with the banks will fall by 0.1 percentage point to 2.85 percent.

At the same time, the interest rate for one-week securities transactions was reduced by the same amount to 2.1 percent.

In addition, the central bank injected additional liquidity into the financial system.

Many factors are weighing on the economy

China has been grappling with a spate of local lockdowns following coronavirus outbreaks of late.

In addition, there were power cuts in important industrial regions due to energy shortages, and the country has seen a slump in the important real estate market in recent months - symbolized by the problems of real estate developer Evergrande.

Regulatory action also hampered growth in other sectors such as the internet economy.

These effects were particularly noticeable in the second half of the year.

Overall strong growth in 2021

Despite everything, annual growth in 2021 is the best value since 2012. China's economy thus clearly exceeded the target of six percent set by the leadership in Beijing. In the first quarter in particular, the economy grew significantly after the virus-related slump in 2020 and recorded an increase of 18.3 percent. However, after China's economy caught up in the further course of the pandemic year 2020 and even ended up being one of the few economies in the world to record growth of 2.3 percent, growth in the other quarters of 2021 was weaker in comparison.

The strong increase over the year can be explained above all by the low basis for comparison due to the pandemic in the previous year.

With a zero-Covid strategy, mass testing, quarantines and entry restrictions, the most populous country got the virus under control faster than most other states.

Nevertheless, economists are now predicting a year with significantly less momentum.

Birth rate at its lowest point

China's birth rate, on the other hand, fell to a record low in 2021, according to official figures.

The statistical authority also announced on Monday that 7.52 births per 1,000 inhabitants were recorded.

This is the lowest level since records began in 1949.

In 2020, the rate was 8.52 births per 1000 inhabitants.

Population growth excluding immigration was now 0.034 percent, the lowest since 1960.

China's population appears to be aging faster than expected, Pinpoint Asset Management economist Zhiwei Zhang said of the data.

"This suggests that China's total population could have peaked in 2021." The government in Beijing abandoned the decade-long one-child policy in 2016.

However, Chinese couples do without children, partly because of the high cost of living.