BEIJING (Reuters – China’s economy grew more quickly than expected in the first quarter. It grew 4.8% annually, according to official data. But, there is a risk that it will slow down as the sweeping COVID-19 restrictions and the Ukraine conflict take their toll.

According to Reuters analysts poll, Gross Domestic Product (GDP), was expected to increase by 4.4% from a previous year, up from 4.0% during the fourth quarter of last year.

Quart-on-quarter GDP increased 1.3% in January and March, which was 1.3% more than the 0.6% increase expected by analysts, as well as a revised 1.5% growth in previous quarters.

The increased global risk from war in Ukraine and widespread COVID-19 lockingdowns are creating a chokehold on the world’s 2nd-largest economy. Economists warn that the likelihood of recession is increasing.

Government’s resolve to end the record COVID-19 case spread has caused congestion on highways, ports, and workers to be stranded. This disruption is affecting global supply chains of goods that include electric cars and iPhones.

The People’s Bank of China (PBOC) announced late Friday that it will reduce the cash banks are required to hold in reserves. It released about 530 billion Yuan ($83.25 Billion) of long-term liquidity in order to offset a rapid slowdown in economic expansion.

China targets a slower rate of economic growth, around 5.5% in this year’s headwinds. But analysts warn that without additional stimulus measures it could prove difficult.