In the first quarter of 2024, China’s economy exceeded expectations with a 5.3% growth in gross domestic product (GDP) from January to March. This surpassed the 4.8% growth predicted by analysts. The National Bureau of Statistics stated that the national economy maintained a positive momentum of recovery during this period.
China’s economic growth can be attributed to a move away from focusing on the consumer market and service sector towards industrial growth. Infrastructure projects were used to stimulate economic activity, as consumer confidence remains low. Dan Wang, chief economist at Hang Seng Bank China, noted that consumption and housing investment were weak, while manufacturing and infrastructure projects drove growth.
Louise Loo, a China economist at Oxford Economics, pointed out that the first-quarter growth was driven by strong performance in manufacturing and seasonal spending associated with the Lunar New Year holiday. These factors contributed to China’s economic expansion during this period.