The Chinese economy is growing faster than expected
BEIJING, April 18 (IANS) China’s economy grew faster than expected in the first three months of the year, as the country emerged from tough Covid restrictions.
Compared to the same period last year, gross domestic product grew by 4.5 percent, the BBC reported on Tuesday, citing official figures.
The main measure of economic activity was driven by higher household spending and higher factory activity.
Beijing vowed to boost the world’s second-largest economy when it lifted coronavirus measures in December.
Also on Tuesday, separate data for March showed that retail sales, the main indicator of household consumption, jumped 10.6 percent, compared to a year earlier.
At the same time, factory production in the country rose by 3.9 percent, although this was slightly below expectations, the BBC reported.
Meanwhile, there was also evidence of a strong revival of the country’s aviation industry.
More than 45 million passenger flights were taken last month, data from China’s Civil Aviation Administration showed, nearly three times more than at the same time last year.
Investors were eagerly awaiting the numbers for evidence of the strength of China’s recovery after the government lifted coronavirus measures.
The BBC has reported that Beijing has also eased a three-year crackdown on big tech companies and property developers.
However, one analyst told the BBC that while the latest numbers are strong, this pace of growth is unlikely to continue.
“What is likely to happen in the coming months is that people may outpace the initial hike after reopening,” said Dan Wang, chief economist at Hang Seng Bank (China).
She added that “manufacturing demand may decline, which cannot sustain a boom in exports because the global economy is slowing down instead of accelerating.”