China's Q1 GDP Grows By 4.5% Yearly, Above Expectations

China's economy has grown 4.5% in the first quarter, as per China's National Bureau of Statistics official data release on Tuesday. It beats the 4% estimates projected by Reuters. It has been the highest growth seen since last year's first quarter rate of 4.8%.

China's first-quarter gross domestic product (GDP) rose sharply while its global peers have been grappling with slow growth and central banks have been spiking interest rates to tame inflation.

China's growth has been under the spotlight since it ended the strict Covid restrictions that were in place for nearly three years in December. As the nation reopens, the recent data suggests the economy witnessed an expansion of nearly 2.9% in the fourth quarter of 2022, indicating a rebound led by consumption, services and infrastructure, but easing inflation and surging bank savings are raising questions over the strength of domestic demand.

There has been a jump in retail sales by 10.6% in March as online sales of physical goods picked up. While the industrial output rose 3.9%, slightly lower than Reuters' estimates of 4%.

Initially analysts polled by Reuters had estimated gross domestic product (GDP) to expand 4.0 per cent from a year earlier, quickening from 2.9% in the fourth quarter.

On a quarter-on-quarter basis, the GDP grew 2.2% in January-March, as per National Bureau of Statistics data release, compared to expectations of 2.2% rise and a revised 0.6% rise over previous quarter.

The government has set a modest target for economic growth of around 5% for this year, after badly missing the 2022 goal.