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China’s economy beat expectations in the first quarter receiving a boost from policies and an increase in demand, the government said. The country’s economy- world’s second-largest- expanded at a 5.3% annual pace in January-March. This beat analysts’ forecasts of about 4.8%, official data showed and compared to the previous quarter, growth was up 1.6%. China has set a gross domestic product (GDP) growth target of 5% for 2024.
China’s economy has struggled to bounce back from the Covid pandemic as a slowdown in demand and a property crisis in the country has weighed on its growth prompting policymakers to introduce a raft of fiscal and monetary policy measures.
Goldman Sachs noted that the degree of China’s government support for households and businesses to spend at home is likely to depend on how Chinese firms fare on international markets as it raised the country’s growth forecast, predicting that the 5% target will be met.
“If external demand is strong, then less domestic stimulus is needed. If the property market continues to deteriorate, then more easing measures will be introduced,” it said.
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