The first quarter of 2025 has brought encouraging news from the Chinese mainland as its economy grew by 5.4% year on year. This strong performance surpassed forecasts and highlighted the resilience of domestic demand.
Retail sales in March surged by 5.9%, marking the fastest pace in over a year, while industrial production jumped 7.7%, reflecting robust factory activity. These figures underscore a solid recovery buoyed by targeted government support.
Economists such as Huang Zichun from Capital Economics stressed the importance of sustained policy measures, including enhanced fiscal spending and potential monetary easing, to keep the momentum going. Xu Tianchen from the Economist Intelligence Unit described the quarter as "a very good start," crediting government initiatives for boosting consumption and investment.
Signs of recovery are also evident in fixed-asset investment (excluding property), with experts like Xing Zhaopeng noting that improvements in industrial output and equipment sales could help close the output gap. This positive trend points to a broader industrial recovery underpinning the overall growth.
While some analysts caution about trade tensions and external pressures potentially impacting future growth, notable gains across various sectors, including a more than 20% surge in nuclear power generation in March, indicate a diversified and promising economic outlook.
Reference(s):
China's 5.4% Q1 growth beats forecasts, analysts see resilient demand
cgtn.com
