China’s economy gathered steam in the first quarter, as robust exports growth offset tepid domestic demand, though the Iran war-fueled energy shock clouds growth outlook, threatening global demand.
Gross domestic product grew 5% in the three months to March, data from the National Statistics Bureau showed Thursday, accelerating from 4.5% in the prior quarter and exceeding economists’ forecast for a 4.8% growth in a Reuters poll.
Beijing had lowered its growth target this year to a range of 4.5% to 5%, the least ambitious goal on record going back to the early 1990s, in a tacit acknowledgement of demand slowdown and lingering trade tensions with the U.S.
“We should be aware that the external environment is becoming more complex and volatile,” the statistics bureau said in a statement, warning of “acute” imbalance between “strong supply and weak demand.”
Separately, urban fixed-asset investment, including real estate and infrastructure investment, climbed 1.7% in the first quarter from a year earlier, missing expectations for a 1.9% growth in a Reuters poll. Investment in the property sector dropped 11.2%.
