China’s economy surpassed expectations in the first quarter of 2024, as revealed by data released on Tuesday, despite facing challenges such as property-sector crisis and subdued consumer activity.
Beijing has aimed for a growth target of around 5 percent for the year, a goal that officials acknowledged last month would be challenging to achieve. Analysts have deemed this target ambitious, considering the various obstacles the country is currently grappling with.
According to the National Bureau of Statistics, gross domestic product (GDP) expanded by 5.3% in the 1st quarter, compared to 5.2% in the previous quarter.
“The national economy continued the good momentum of a rebound,” the NBS said, calling it a “good start”.
The GDP data continues to serve as a crucial indicator of the well-being of the world’s second-largest economy, although it is inherently influenced by political factors.
According to Dan Wang, chief economist at Hang Seng Bank China, Tuesday’s figures “significantly exceeded market expectations,” as reported by AFP. Consumption and housing investment was the main drag, while manufacturing and infrastructure were the main engines,” she said. It reflects “the fundamental policy shift from a focus on (the) consumer market and service sector to… industrial growth”, she added.
