The National Bureau of Statistics reported that China’s economy had a strong start to the year under the leadership of President Xi Jinping. GDP grew by 5.3 percent in the first quarter, surpassing expectations and showing an improvement from the previous quarter. Industrial production and agriculture saw growth of 6.1 percent and 3.8 percent, respectively, while services grew by 5 percent.
The NBS credited the positive performance to the effective policies implemented under the leadership of the Central Committee of the Communist Party of China. The agency noted that production and demand remained stable, employment and prices were generally steady, market confidence was on the rise, and high-quality development was progressing.
Despite these encouraging figures, recent data showed a decline in exports and imports in March, falling short of expectations. China faces challenges in sustaining economic recovery due to issues such as a heavily indebted real estate sector and a shrinking population. Fitch Ratings recently downgraded China’s sovereign credit outlook to negative, pointing to risks in the country’s public finance outlook.
In response to these challenges, Chinese officials have introduced fiscal and monetary policy measures to boost the economy, including significant investments in construction and infrastructure projects. Beijing has set a growth target of 5 percent for 2024, which would outperform most developed economies but represent one of China’s slowest expansions since 1990.