China: Economy outperforms first quarter forecasts

China's economy grew far more than expected in the first quarter of 2024, according to official data released on Tuesday.

From January to March, China's gross domestic product (GDP) grew by 5.3% — significantly more than the 4.8% growth forecasted by analysts polled by Bloomberg.

"The national economy continued the good momentum of a rebound," China's National Bureau of Statistics said.

What's behind China's growth?

Beijing has once again used infrastructure projects to help lift the economy as consumer confidence remains tepid.

"Consumption and housing investment was the main drag, while manufacturing and infrastructure were the main engines," Dan Wang, chief economist at Hang Seng Bank China, told AFP.

It reflects "the fundamental policy shift from a focus on the consumer market and service sector to... industrial growth," she added.

Louise Loo, a China economist at Oxford Economics, also said that China's first-quarter growth as driven by "broad manufacturing outperformance," as well as seasonal spending associated with the Lunar New Year holiday.

zc/ab (Reuters, AFP, AP)