Despite concerns about the Chinese property crisis, China’s economy expanded by 5.3% in the first quarter compared to a year earlier. This strong growth was supported by government initiatives aimed at boosting economic demand in the country. However, the National Bureau of Statistics in China noted that while the economy had a good start in the first quarter, economic stability was still not firmly established.
The Chinese property sector has been facing challenges such as a slowdown in demand and major real estate companies defaulting on their debts in recent years. This has had a negative impact on property investment, which fell by 9.5% year-on-year in the last quarter. Despite these challenges, China’s industrial output posted strong growth, increasing by 6.1% compared to the same period last year. Retail sales also showed a positive trend, growing at an annual pace of 4.7%, while fixed investment in factories and equipment rose by 4.5%.
Imports and exports in March were down compared to the same month last year, with exports falling by 7.5%. However, despite these challenges, Chinese policymakers have set a GDP growth target of 5% for the year, reflecting an ambitious goal in the current economic context. The latest economic data coincided with a visit by German Chancellor Olaf Scholz to China, where he held talks with President Xi Jinping about potential cooperation between Germany and China to address global economic challenges such as climate change and digital transformation.
