China GDP: 5.3% first-quarter rise better than expected as recovery regains momentum
- Widely watched gross domestic product (GDP) figure beat expectations in the first three months of the year
- Retail sales rose by 3.1 per cent in March year on year, while property investment fell by 9.5 per cent in the first quarter
China reported better-than-expected economic growth of 5.3 per cent in the first quarter, staying on course for this year’s growth target despite ongoing challenges from the property market downturn and subdued domestic demand.
Quarter on quarter, China’s economy grew by 1.6 per cent in the first three months of the year, up from a rise of 1.2 per cent from the previous three months.
“The figures were fuelled by rapid growth in the services sector, as well as increased overseas demand driving export growth in the industrial sector,” said Ding Shuang, chief Greater China economist at Standard Chartered Bank.
Beijing has pinned high hopes on consumption to drive up and consolidate the economic recovery this year, but month on month, retail sales rose by only 0.26 per cent from February.