चीन की पहली तिमाही में सकल घरेलू उत्पाद में वर्ष-दर-वर्ष 5.3% की वृद्धि हुई, जो पूर्वानुमान से काफी ऊपर है

Instant View: China's Q1 GDP Grows 5.3% Y/y, Well Above Forecast

China's Q1 GDP grows 5.3% year-on-year, significantly surpassing expectations, indicating resilience and potential economic strength amidst global uncertainties.

Global News
101
16, Apr, 2024

Jivika Chawla

@JivikaChawla

Instant View: China's Q1 GDP Grows 5.3% Y/y, Well Above Forecast

China's economy expanded by 5.3% year-on-year in the first quarter, as revealed by official data on Tuesday, surpassing analysts' expectations and offering reassurance to policymakers amidst ongoing challenges, notably a prolonged property crisis.

Analysts surveyed by Reuters had projected a more modest growth of 4.6% for first-quarter gross domestic product (GDP), compared to the 5.2% growth recorded in the previous three months. The higher-than-expected growth rate provides policymakers with a positive signal as they endeavor to bolster demand and confidence amid the enduring property market issues.

Quarterly, GDP increased by 1.6% from January to March, exceeding expectations of a 1.4% rise and marking an improvement from the revised 1.2% gain seen in the preceding quarter.

Key highlights from the data include:

Q1 GDP grew by 5.3% year-on-year, surpassing analysts' forecast of 4.6% and the previous quarter's 5.2%.
Quarterly GDP growth stood at 1.6%, higher than the expected 1.4% rise and the revised 1.2% gain in the previous quarter.
March industrial output increased by 4.5% year-on-year, below the forecasted 6.0% rise but an improvement from January-February's 7%.
March retail sales expanded by 3.1% year-on-year, missing the forecast of 4.6% growth but showing improvement from January-February's 5.5%.
January to March fixed asset investment rose by 4.5% year-on-year, exceeding the forecasted 4.1% increase and January-February's 4.2%.
Property investment in the first quarter declined by 9.5% year-on-year, compared to the 9.0% drop in January-February.

Market reaction to the robust economic growth data was mixed, with Chinese stocks showing limited response, as the blue-chip CSI 300 Index dipped 0.5% by 0220 GMT. However, China's onshore yuan experienced a slight strengthening.

The data underscores China's resilience and the effectiveness of policy measures in sustaining economic growth amidst challenges, particularly in the property sector. Policymakers may interpret the stronger-than-expected growth as a positive sign but could still face pressures to implement further stimulus measures to support the economy.