China’s economy expanded by 5.3% year-on-year in the first quarter of 2024, according to official data released Tuesday, demonstrating resilience despite persistent global economic risks. The growth slightly exceeded analyst expectations and suggests stabilization after last year’s uneven recovery from pandemic restrictions.
The National Bureau of Statistics attributed the performance to stronger-than-expected industrial output and targeted stimulus measures. ‘The fundamentals of China’s long-term economic growth have not changed,’ said a bureau spokesperson in a statement accompanying the data release.
However, analysts note persistent challenges including weak consumer confidence and a prolonged property sector slump. ‘The headline numbers look solid, but there are clear divergences between manufacturing strength and domestic consumption weakness,’ said a Hong Kong-based economist with a major international bank who requested anonymity due to client sensitivities.
Global markets reacted cautiously to the news, with Asian stocks showing mixed performance. The figures come as the IMF projects global growth at just 3.1% for 2024, with China expected to account for over 30% of worldwide expansion.
Looking ahead, economists warn that sustaining growth may require additional policy support, particularly if trade tensions with Western economies escalate further. ‘The test will come in Q3 when we see if this momentum can be maintained without large-scale stimulus,’ noted a Singapore-based analyst with a regional think tank.