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HONG KONG (AP) \u2014 China\u2019s economy in the first quarter beat expectations while receiving a boost from policies and an increase in demand, the government said Tuesday.<\/p>\n
The world\u2019s second-largest economy expanded at a 5.3% annual pace in January-March, beating analysts\u2019 forecasts of about 4.8%, official data show. Compared to the previous quarter, growth was up 1.6%.<\/p>\n
China\u2019s economy has struggled to bounce back from the COVID-19 pandemic, with a slowdown in demand and a property crisis weighing on its growth.<\/p>\n
The better-than-expected economy data came days after China reported a decline in import and export figures for March as well as a slowdown in inflation following months of deflationary pressures.<\/p>\n
Industrial output for the first quarter was up 6.1% compared to the same time last year, and retail sales grew at an annual pace of 4.7%. Fixed investment for Q1 grew 4.5% compared to the same period a year ago.<\/p>\n
The economy growth for Q1 was supported by \u201cbroad manufacturing outperformance,” festivities-boosted household spending due to the Lunar New Year holidays as well as policies that help boost investments, according to China economist Louise Loo of Oxford Economics.<\/p>\n
\u201cHowever, \u2018standalone\u2019 March activity indicators suggest weakness coming through post-Lunar New Year,\u201d she said. \u201cExternal demand conditions also remain unpredictable, as seen in March\u2019s sharp export underperformance.\u201d<\/p>\n
Loo pointed out that factors such as an unwinding of excess inventory, a normalization of household spending post-holidays as well as cautious stimulus would affect growth for the second quarter.<\/p>\n
Policymakers have unveiled a raft of fiscal and monetary policy measures as Beijing seeks to boost the economy. China has set an ambitious gross domestic product (GDP) growth target of 5% for 2024.<\/p>\n<\/div>\n