In the first quarter of the year, despite facing challenges such as a property-sector crisis and weak consumer demand, China’s economy grew by 5.3 percent, surpassing expectations under the leadership of President Xi Jinping. The National Bureau of Statistics (NBS) reported this positive performance, which was attributed to effective policies implemented under the guidance of the Central Committee of the Communist Party of China.
According to NBS data, industrial production grew by 6.1 percent while agriculture saw a 3.8 percent growth in the first quarter. Services also experienced a 5 percent growth. However, recent data on exports and imports showed a decline in March, highlighting ongoing challenges faced by China’s economy. Structural issues such as a highly indebted real estate sector and a shrinking population have been hindering sustained recovery from the COVID-19 pandemic.
Fitch Ratings recently downgraded China’s sovereign credit outlook to negative due to increasing risks to its public finance outlook. Despite setting a growth target of 5 percent for 2024, Chinese officials have implemented fiscal and monetary policy measures, including substantial spending on construction and infrastructure projects to stimulate economic growth.