China's Q1 GDP growth surpassed expectations, data shows
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China's economy grew faster than expected in the first quarter, data showed on Tuesday, offering some relief to officials amid efforts to maintain growth.
The government has released its fiscal and monetary policy measures in an effort to meet its 2024 GDP growth target of around 5%, which analysts have described as an ambitious goal, noting that last year's growth rate of 5.2% was likely boosted by a rebound from 2022 – which faced limitations because of COVID-19.
GDP grew 5.3% in January-March year over year, according to data released by the National Bureau of Statistics. This was higher than analysts' expectations in a Reuters survey of a 4.6% increase and slightly faster than the 5.2% expansion in the previous three months.
«The result is positive for the economy to hit its target. Momentum appears to be stable for now, evidenced by the March data not surprising on the upside,» said Jeff Ng, head of Asia macro strategy at SMBC in Singapore.
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China's economy grew faster than expected in the first quarter, data showed on Tuesday. (Keith Tsuji/Getty Images / Reuters Photos)
«I think sentiments are still leaning bearish. I'm anticipating some reversal, possibly from the last quarter of 2024,» he added.
The GDP on a quarter-by-quarter basis grew 1.6% in the first quarter, which is higher than the 1.4% forecast for growth.
The Chinese economy, the second largest in the world, has struggled to see a strong and sustainable post-pandemic jump, as it has been hurt by a protracted property downturn, mounting local government debts and weak private-sector spending.
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