China’s economy surpasses expectations with 5.3% growth in the first quarter of 2024, according to IAG.

The National Bureau of Statistics (NBS) has reported that mainland China’s economy grew by 5.3% year-on-year in the first quarter of 2024, surpassing the forecast of 4.8% and increasing by 1.6 percentage points quarter-on-quarter. The country’s gross domestic product (GDP) reached about RMB29.6 trillion (US$4.09 trillion) during this period.

The “troika” – China’s economic indicator of consumption, export, and investment – all showed growth in the first quarter. However, the scale of the industrial sector and total consumption fell short of expectations at 6.1% compared to the anticipated 6.6%.

Total retail sales of consumer goods rose to about RMB12 trillion (US$1.66 trillion), marking a 4.7% year-on-year increase that was lower than the expected 5.4%. Meanwhile, investment in fixed assets increased by RMB10 trillion (US$1.38 trillion) or 4.5% year-on-year, exceeding the anticipated 4% growth.

In terms of sectors, the service sector expanded by 5% in the first quarter. Specifically, transport, storage, and postal services saw a growth of 7.3%, while tourism, accommodation, and food and beverage services also increased by 7.3%.

On average, disposable income for individuals in China during the first quarter was RMB11,539 (US$1,595), showing a 6.2% year-on-year increase after adjusting for price factors. In terms of regions, urban residents had a per capita disposable income of RMB15,150 (US$2,090), up 5.3% in real terms, whereas rural residents had a per capita disposable income of RMB6,596 (US$911), indicating a 7.7% increase.