China's economic expansion in Q1 beats predictions, reaches 5%

Posted on April 22, 2024   |  

Despite challenges from a property crisis and weakening consumer activity, China's economy exceeds expectations in the first quarter of 2024.

The Chinese government sets a growth target of 5% for the year.

In January-March, gross domestic product (GDP) expands by 5.3%, slightly higher than the previous quarter's 5.2%.

Analysts, who anticipated a 4.8% growth, are surprised by the stronger-than-expected figures.

Fitch downgrades China's sovereign credit outlook to negative, citing increasing risks in public finance amid uncertain economic prospects.

Policy measures and the issuance of sovereign bonds aim to bolster infrastructure spending and consumption.

While sectors like services show resilience, retail sales and industrial output decline, reflecting subdued household spending and economic uncertainty.