According to official data released on Tuesday, China’s economy grew more than expected in the first quarter of 2024. From January to March, China’s gross domestic product (GDP) increased by 5.3%, exceeding the 4.8% growth forecasted by analysts polled by Bloomberg. The National Bureau of Statistics stated that “the national economy continued the good momentum of a rebound.”
One of the key factors behind China’s growth is the use of infrastructure projects to support the economy, as consumer confidence remains weak. Dan Wang, chief economist at Hang Seng Bank China, noted that consumption and housing investment were dragging factors while manufacturing and infrastructure served as main engines for growth. This reflects a shift in policy focus from consumer markets and services to industrial growth.
Louise Loo, a China economist at Oxford Economics, highlighted that China’s first-quarter growth was driven by strong performance in manufacturing and seasonal spending associated with the Lunar New Year holiday. Overall, the growth in China’s economy in the first quarter of 2024 was attributed to a combination of factors including infrastructure projects, manufacturing strength, and holiday spending.