China’s first-quarter economic growth was 5% higher than the same period last year. The result was slightly higher than the forecast of 4.8%. The growth rate also increased from the 4.5% recorded in the prior quarter. This shows a slight rebound in business activity.
Exports and manufacturing drive the momentum
The manufacturing sector played an important role in supporting the growth. The industrial output was stable and offset the weaker areas of the economy.
In some industries, exports performed very well. This segment was cited by analysts as one of major positives for the recent figures.
The overall strength of exports is beginning to decline. The growth in exports for March was 2.5% on an annual basis, which is the lowest rate since six months.
Global energy demand and war impact
Global energy flow has been disrupted by the ongoing conflicts between Israel, Iran, and the US. Asian economies including China have been under pressure due to higher prices and uncertainty in supply.
Official data have not shown the entire economic impact, according to experts.
The property sector is still a drag on growth
China’s real estate market is still a significant weakness. The investment in real estate is continuing to decline and this has a negative impact on the broader economy.
Meanwhile, the domestic market remains weak.
