Shocking First Quarter Growth: China Outperforms Expectations with 5.3% GDP Increase

In the first quarter of 2024, China’s economy outperformed expectations with a 5.3% growth in gross domestic product (GDP) from January to March. This was an increase from the 4.8% growth predicted by analysts. The National Bureau of Statistics stated that the national economy continued to recover positively during this time period.

The growth in China’s economy can be attributed to infrastructure projects that stimulated economic activity, as consumer confidence remained low. According to Dan Wang, chief economist at Hang Seng Bank China, consumption and housing investment were weak, while manufacturing and infrastructure projects drove growth. This shift reflects a move away from focusing on the consumer market and service sector towards industrial growth.

Louise Loo, a China economist at Oxford Economics, noted that the first-quarter growth was driven by strong performance in manufacturing and seasonal spending associated with the Lunar New Year holiday. These factors contributed to China’s economic expansion during this period.