In the first quarter, the Chinese economy grew by 1.6% quarter-on-quarter, surpassing economist forecasts of 0.9%. This growth was significant as Beijing had set a growth target of 5.0% for the year 2024. Despite the positive growth, other economic indicators showed mixed signals.
Industrial production increased by 4.5% year-on-year in March, down from 7.0% in February. Retail sales also saw a decrease, advancing by 3.1% compared to 5.5% in February. Economists had predicted industrial production and retail sales to increase by 5.4% and 4.5% respectively. These figures indicated a loss of momentum towards the end of the first quarter.
However, fixed asset investment and unemployment rates showed a potential shift in momentum. Fixed asset investment rose by 4.5% year-on-year, while the unemployment rate in China fell from 5.3% to 5.2%. Economists had forecasted fixed asset investments to increase by 5.3% and the unemployment rate to drop to 5.2%.
The reaction of the Australian Dollar to the economic numbers from China was notable. The AUD/USD initially rose to a high of $0.64446 before decreasing to a low of $0.64081. This fluctuation in the Aussie Dollar reflected market uncertainty and reaction to the various economic indicators released by China.