In the first quarter of 2024, China’s economy exceeded expectations, with official data showing a 5.3% growth in gross domestic product (GDP) from January to March. This surpassed the 4.8% growth predicted by analysts. The National Bureau of Statistics stated that the national economy maintained a positive momentum of recovery during this period.
The growth in China’s economy can be attributed to several factors, including the use of infrastructure projects to stimulate economic activity and a shift towards industrial growth. Consumer confidence remains low, and consumption and housing investment were weak. However, manufacturing and infrastructure projects drove growth.
Louise Loo, a China economist at Oxford Economics, pointed out that the first-quarter growth was driven by strong performance in manufacturing and seasonal spending associated with the Lunar New Year holiday. These factors contributed to China’s economic expansion during this period.
Overall, China’s economy is showing positive signs of recovery, thanks to its focus on infrastructure projects and industrial growth. While consumer confidence remains low, this shift reflects a move away from relying solely on the consumer market and service sector towards more sustainable sources of economic growth.