The Chinese economy has shown strong growth in the first quarter, with a 5.3% expansion compared to the same period last year. Despite this positive outlook, there are concerns about the Chinese property crisis, which continues to weigh on overall growth. Despite challenges in the property sector, China’s industrial output and retail sales posted strong growth in the last quarter.
Despite the challenges in the property sector, China’s industrial output and retail sales showed positive trends, growing by 6.1% and 4.7%, respectively, compared to the same period last year. Fixed investment in factories and equipment also rose by 4.5%. The Lunar New Year celebrations at the beginning of the year likely contributed to increased household spending in the last quarter.
While imports and exports were down compared to the same month last year, with exports falling by 7.5%, there is an ambitious GDP growth target of 5% for the year set by Chinese policymakers. This reflects their determination to achieve economic stability despite challenges like a slowdown in demand and a prolonged property crisis. The latest economic data coincided with a visit by German Chancellor Olaf Scholz to China, where he held talks with President Xi Jinping about strengthening economic ties between Germany and China.