China's Q1 GDP Growth Surpasses Expectations With 5.3%

According to the survey, analysts had anticipated a 4.6 per cent year-on-year growth in GDP for the first quarter, contrasting with the 5.2 per cent growth recorded in the preceding three months.

In the first quarter, China's GDP expanded by 1.6 per cent on a quarter-on-quarter basis ( Image Source :Getty )

China's economy expanded faster than anticipated in the first quarter, according to official data released by the country's National Bureau of Statistics on Tuesday. Gross domestic product (GDP) from January to March increased by 5.3 per cent compared to the previous year. This growth outpaced the 5.2 per cent expansion seen in the fourth quarter of 2023 and even exceeded the 4.6 per cent growth predicted by economists surveyed by the news agency Reuters. This unexpected growth is a positive sign for investors.

According to the survey, analysts had anticipated a 4.6 per cent year-on-year growth in GDP for the first quarter, contrasting with the 5.2 per cent growth recorded in the preceding three months. However, the number showed a different picture, giving a sign of relief to the country's policymakers.

In the first quarter, China's GDP expanded by 1.6 per cent on a quarter-on-quarter basis, surpassing Reuters poll expectations of 1.4 per cent and marking an improvement from the revised fourth quarter expansion of 1.2 per cent. Beijing has established a growth target of approximately 5 per cent for 2024.

Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, attributed part of the growth to external demand, with export volume increasing by 14 per cent year-on-year. In a note on Tuesday, Zhang stated that the robust growth in the first quarter will likely reinforce the government's confidence in its current policy approach, according to the report.

"On the face of it, the headline number looks good... but I think the momentum is actually quite weak at the end. It basically looks quite front-loaded, the strength in the economy. Front-loaded in the January-February point, which is basically the Chinese New Year, if you think about it. And essentially, it kind of weakened from there,” said Alvin Tan, Head Of Asia Fix Strategy, BC Capital Market, Singapore, reported Reuters.