- China’s Q1 GDP surpasses expectations, expanding by 5.3%
- Retail sales growth slows to 3.1% in the first quarter
- Real estate investment declines by 9.5% amid ongoing crisis
China’s economy commenced the year on a more robust note than had been anticipated, notwithstanding the escalation of the property sector crisis.
In comparison to the same period last year, the gross domestic product (GDP) increased by 5.3% in the initial quarter of 2024, as reported by authoritative sources.
The expansion of the world’s second-largest economy may decelerate to 4.6% in the first quarter, contrary to initial projections.
Beijing established an ambitious annual growth objective of “around 5%” for the world’s second-largest economy last month.
The National Bureau of Statistics (NBS) also reported that retail sales growth for the first quarter, a key indicator of Chinese consumer confidence, declined to 3.1%.
Moody’s Analytics’ Harry Murphy Cruise said, “You cannot manufacture growth forever, so households must become active participants if China is to reach its 5% growth target.
During the same time frame, real estate investment decreased by 9.5%, illustrating the difficulties that Chinese real estate companies confront.
As China continues to grapple with an ongoing property market crisis, these figures were released. The International Monetary Fund (IMF) estimates that the sector comprises approximately 20% of the economy.
In March, according to the most recent data, prices for newly constructed homes fell at the quickest rate in over eight years.
The real estate sector crisis was brought to the forefront in January when a Hong Kong court ordered the liquidation of property behemoth Evergrande.
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Shimao and Country Garden, two competing developers, have also encountered petitions for the dissolution of business operations within the municipality.
The credit rating agency Fitch reduced its assessment of China last week, attributing the decline to escalating financial risks stemming from the nation’s economic difficulties.
In March, during the annual summit of Chinese leaders, officials reported that the economy expanded by 5.2% in 2023.
The Chinese economy grew at an exceptional rate for decades, with official estimates placing its annual GDP growth near 10%.
