In the first quarter of 2024, China’s economy experienced growth that surpassed expectations, according to official data released on Tuesday. The National Bureau of Statistics announced that China’s gross domestic product (GDP) increased by 5.3% from January to March, exceeding the 4.8% growth forecasted by analysts polled by Bloomberg.
The strong performance in the national economy can be attributed to a variety of factors, including infrastructure projects and manufacturing strength. According to Dan Wang, chief economist at Hang Seng Bank China, consumption and housing investment were dragging factors while manufacturing and infrastructure served as main engines for growth. This shift in policy focus from consumer markets and services to industrial growth reflects a recognition of the importance of investment in driving economic growth.
Louise Loo, a China economist at Oxford Economics, highlighted that China’s first-quarter growth was driven by strong performance in manufacturing and seasonal spending associated with the Lunar New Year holiday. Overall, the growth in China’s economy in the first quarter of 2024 was attributed to a combination of factors including infrastructure projects, manufacturing strength, and holiday spending.
