China's First-quarter GDP Grew 4.5%, Above Estimates

Via Syndicated Feed

Cover Image Attribute: Street Vendors at Guilin, Yangshuo County / Image by GuangWu YANG from Pixabay
Cover Image Attribute: Street Vendors at Guilin, Yangshuo County / Image by GuangWu YANG from Pixabay 

China's economic growth has garnered significant attention as it has lifted most of its stringent COVID restrictions, which were in place for almost three years and have started reopening.

According to official data released on Tuesday, China's economy i.e., GDP expanded by 4.5% compared to last year in the first quarter. This growth is attributed to removing COVID-related restrictions and boosting of economic activity. As a result, the growth rate is higher than the 3.8% average forecast by economists in a recent Caixin survey. It also exceeds the 2.9% growth rate recorded in the fourth quarter of last year, when China maintained a strict "zero-COVID" policy most of the time.

Chart Attribute: China's GDP Growth Y-o-Y / Source: National Bureau of Statistics (Chinese: 国家统计局)
Chart Attribute: China's GDP Growth Y-o-Y / Source: National Bureau of Statistics (Chinese: 国家统计局) 

In March, there was a significant increase of 10.6% in retail sales, mainly due to a rise in online sales of physical goods. At the same time, industrial output increased by 3.9%, which was slightly less than the 4% forecast by Reuters.

Fixed asset investment during the year-to-date period has grown by 5.1% compared to the same period last year, which is lower than anticipated due to a slowdown in infrastructure and manufacturing investment growth. Additionally, real estate investment continued to decline during this period.

The economy grew by 3% in 2022, less than the 5.5% official target Beijing set in March of that same year. However, the government established a modest growth target of "around 5%" for 2023 last month.

In the first quarter of this year, China's services sector saw a 5.4% increase in value compared to last year's period. According to government data, the services production index increased by 9.2%, with accommodation, catering, and information technology services leading the growth in March. However, economists have cautioned that the economic recovery in China may take more time than initially anticipated.

IndraStra Global Staff has not edited this story, which is auto-generated from a syndicated feed.

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IndraStra Global: China's First-quarter GDP Grew 4.5%, Above Estimates
China's First-quarter GDP Grew 4.5%, Above Estimates
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