China’s economy soared in the first quarter, consumer spending strengthened, along with increased production and investment, allowing the Asian nation to recover from the coveted fall a year ago.
China’s GDP rose 18.3 percent in the first quarter, up from 18.3 percent a year earlier, according to economists’ forecast of 18.5 percent in the Bloomberg survey. Figures released by the Bureau of Statistics this Friday (local time) are distorted by comparisons made since the economy closed a year ago. A good read of the pace of the economy comes from quarterly growth, which slowed to 0.6 per cent from 2.6 per cent in the previous three months.
Other key highlights
Industrial production rose 14.1 percent in March, compared to the average plan of 18 percent of economists.
Retail sales expanded 34.2 percent in March, beating expectations for a 28 percent increase.
Fixed asset investment rose 25.6 percent in the first quarter compared to the previous year
The unemployment rate at the end of March was 5.3%.
China’s economy slowed steadily after a historic contraction in the first quarter of last year, regaining all land it lost at the end of September. This resurgence was driven by strong industrial production and strong exports as the epidemic escalated into medical products and electronics made in China.
However, the huge growth in GDP, rising inflation and rising credit levels have kept policymakers in custody. Beijing has now signaled that it wants to cut monetary and monetary incentives, which is accelerating recovery, and tightening regulatory oversight in areas such as loans and real estate. The central bank has asked banks to slow down credit growth in the coming months, despite officials insisting on a gradual reduction in policy.
Globally, the release of vaccines helps boost the global economy and stabilize China’s growth. On top of that, the Biden administration’s massive financial stimulus is expected to have major leakage effects on other parts of the world, especially China, the world’s largest exporter. Bloomberg Economy’s Zhang Shu improved China’s growth forecast for this year from 8.2 percent to 9.3 percent. The government’s official target is growth of more than 6 percent this year.