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20-05-2023, 08:31 PM
China’s economy rebounded faster than expected, surpassing growth estimates for the first quarter of the year, after the country relaxed its onerous Covid-19 restrictions and consumer spending surged.
World’s second largest economy grew at a rate of 4.5% compared with the same quarter a year earlier, according to the National Bureau of Statistics. The pace of increase was the fastest in a year and beat the 4% rise forecast by analysts polled by Reuters.
China’s consumer economy showed signs of resurgence, with retail sales rising 10.6% in March, representing the biggest jump in almost two years and more than double the forecast rate. During the same month, industrial production also rose 3.9% compared with a year earlier, a five-month high.
China sets modest economic targets as it seeks to bounce back from Covid woes.
“The speed of the recovery has exceeded even our relatively upbeat expectations,” said Julian Evans-Pritchard, head of China economics at Capital Economics, adding that full-year growth could reach 6%, exceeding the government’s official target of about 5%.
World’s second largest economy grew at a rate of 4.5% compared with the same quarter a year earlier, according to the National Bureau of Statistics. The pace of increase was the fastest in a year and beat the 4% rise forecast by analysts polled by Reuters.
China’s consumer economy showed signs of resurgence, with retail sales rising 10.6% in March, representing the biggest jump in almost two years and more than double the forecast rate. During the same month, industrial production also rose 3.9% compared with a year earlier, a five-month high.
China sets modest economic targets as it seeks to bounce back from Covid woes.
“The speed of the recovery has exceeded even our relatively upbeat expectations,” said Julian Evans-Pritchard, head of China economics at Capital Economics, adding that full-year growth could reach 6%, exceeding the government’s official target of about 5%.
