Chinese GDP accelerated its growth above expectations in the first quarter, after the latest measures against the covid in force were lifted. The increase was 4.5% year-on-year, above the 4% expected by analysts and 2.9% in the previous quarter, according to data published this Tuesday by the National Statistics Office (ONE). The economy advanced 2.2% quarter-on-quarter between January and March, a strong rebound from the previous 0.6%.
The driver of the increase was the surge in consumption, with growth of 5.4% in the services sector. Retail sales, another of the data revealed this Tuesday, rebounded 10.6%, again above expectations, although it is compared to a weak period. "The economic recovery is on track. The bright spot is consumption, which is strengthening as household confidence improves," said Zhiwei Zhang, an analyst at Pinpoint.
For its part, there was an advance of 3.3% in the secondary sector -industry, construction- and 3.7% in the primary sector -agriculture-.
The ONE has highlighted growth in the face of the "severe and complex" international environment, as well as the arduous internal reform tasks to accelerate the transition to a new pattern of development focused on quality growth. With this idea, services already account for 55% of the activity.
The data confirms the good exit from the pandemic restrictions, under the strict covid zero system. "Market expectations have improved significantly and the economy has started well," the statistical office said. Now the challenge is to hold on with lower demand in the midst of international turmoil.
The rebound in activity has continued through April, despite the fact that the industry appears to have lost some momentum, said Julian Evans-Pritchard, senior China analyst at consultancy Capital Economics. "The speed of the recovery has exceeded even our relatively optimistic expectations," he acknowledged. According to Citi, the economy will grow 6.1% in 2023 as a whole, above the 5.7% estimated so far.
