China’s Economic Growth in Q1

Date: Wednesday
Source: Reuters

China’s economy grew 5.4% year-on-year in the first quarter, surpassing expectations, but an escalating trade war with the United States casts doubt on future growth and increases pressure on Beijing to introduce more stimulus measures.

Analysts expected China’s first-quarter gross domestic product (GDP) to rise 5.1%, a decrease from 5.4% in the preceding three months. Beijing aims for around 5% economic growth this year, a target seen as ambitious due to ongoing property market issues, weak domestic demand, and U.S. tariffs imposed by President Donald Trump on Chinese exports.

On a quarter-to-quarter basis, GDP grew 1.2% from January to March, which was below the anticipated 1.4% rise and lower than the 1.6% increase in the previous quarter.

Chinese authorities emphasize that there is sufficient policy space to support growth, committing to lower interest rates and adjust the reserve requirement ratio when deemed appropriate.