China GDP: uneven economic recovery ups pressure despite better-than-expected 4.5 per cent first-quarter growth

China’s economy beat expectations in the first quarter, growing by 4.5 per cent compared to a year earlier, amid Beijing’s all-out recovery measures

But retail sales, investment and industrial output data released on Tuesday showed that the recovery remains uneven, while employment pressure remains

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After China’s economy grew by 3 per cent last year, China has set an overall gross domestic product target for 2023 at around 5 per cent. Photo: AFP

Kinling Loin BeijingandFrank Tangin Beijing

Published: 10:00am, 18 Apr 2023Updated: 4:28pm, 18 Apr 2023

Domestic and international challenges will continue to pose a threat to China’s post-Covid economic recovery, while it also needs to tackle weak links including the property sector and semiconductors, despite first quarter gross domestic product beating expectations.

The world’s second-largest economy grew by 4.5 per cent in the first quarter of 2023, according to data released on Tuesday, amid Beijing’s intensive efforts to consolidate China’s post-pandemic recovery.

The growth rate was above the 4 per cent predicted by Wind, a Chinese data provider, and up from the 2.9 per cent growth seen in the fourth quarter of last year.

But market worries remain as the recovery of retail sales, industrial production and fixed-asset investment was uneven, while slowing export orders, international market turbulence and US containment endeavours add uncertainty.

The fading of consumption momentum, the winding down of fiscal stimulus, and a weaker incoming external demand would put downward pressure on domestic growth in the second half year

Oxford Economics

“The fading of consumption momentum, the winding down of fiscal stimulus, and a weaker incoming external demand would put downward pressure on domestic growth in the second half year,” Oxford Economics said.