China's GDP grew by 5% in the first quarter despite external challenges — FT
China's gross domestic product grew by 5% year-on-year in the first quarter, exceeding analysts' expectations and accelerating compared to the previous quarter.
Growth was driven by exports, the development of high-tech manufacturing, and fiscal stimulus measures, which offset weak domestic demand.
This was reported by the Financial Times.
The result exceeded analysts’ forecasts, which had predicted growth of 4.8%, as well as the previous quarter’s figure of 4.5%. It also sits at the upper end of the government’s target range of 4.5–5%.
An additional factor was stronger-than-expected industrial production, which rose 5.7% year-over-year in March against a forecast of 5.3%.
In contrast, retail sales, which reflect consumer sentiment, grew less than expected—by 1.7% versus a forecast of 2.4%.
Equipment production rose by 8.9% in the first quarter, and high-tech production by 12.5%, while production of 3D-printing equipment, lithium-ion batteries, and industrial robots increased by 54%, 40.8%, and 33.2%, respectively.
"The national economy has gotten off to a good start," the National Bureau of Statistics of China stated.
The agency also noted an acceleration in industrial production, particularly in the equipment and high-tech sectors.
At the same time, analysts expect that China’s economy could be affected by a war with Iran and rising energy prices. This could reduce deflationary pressure while simultaneously impacting the profitability of the industrial sector.
China has deniedreports of correspondence between Xi Jinping and Trump regarding Iran.
Iran and the U.S. have not yet agreed on a new round of negotiations, although both sides continue to exchange messages through intermediaries. Meanwhile, various options for a potential meeting location are being considered, but no final decision has been made.
China also criticized the US for the naval blockade of Iranian ports. Beijing believes that such actions only escalate the situation and could derail the ceasefire. The statement came after the collapse of negotiations between Washington and Tehran.
The U.S. and Iran are discussing a new round of talks – Bloomberg.
Ukraine and a number of countries have supported the EU’s new sanctions against Russia.
