China’s economy grew stronger than expected at the start of this year, partly thanks to robust factory activity.
Gross domestic product grew by 5.3% in the first quarter from a year ago, according to the National Bureau of Statistics on Tuesday. That beat the estimate of 4.6% growth from a Reuters poll of economists. It also accelerated from the 5.2% growth in the previous three months.
Last month, an official survey showed China’s manufacturing purchasing manager’s index (PMI) expanded for the first time in six months. The Caixin/S&P manufacturing PMI also hit its strongest reading in more than a year, as overseas demand picked up.
China has set an annual growth target of around 5% for 2024, which many analysts considered ambitious, as consumer and business confidence remains weak and the real estate sector is mired in a prolonged downturn.
The authorities have cut interest rates this year to boost bank lending and speed up central government spending to support infrastructure investment.
This is a developing story and will be updated.
