If there’s a global economic slowdown underway, someone forgot to tell China.
The economy of the world’s most populous nation unexpectedly held strong in the first three months of the year as policy makers boosted stimulus measures to sustain robust growth in the country of 1.4 billion people.
Gross Domestic Product (GDP) in China rose 6.4% in the first quarter from a year earlier, exceeding economist estimates and matching the previous three months. In March, factory output climbed 8.5% from a year earlier, much higher than forecast. Retail sales expanded 8.7%, while investment in the country increased 6.3% year-to-date.
China’s resilience in the face of global economic headwinds shows that growth and stimulus policies instituted by the government are taking hold, with tax cuts and supportive monetary policies underpinning sentiment. Fears that the recovery is temporary may continue amid weaker global demand and uncertainty surrounding current trade talks with the U.S.
Economists surveyed by Bloomberg had forecast a full-year growth rate of 6.2% in 2019, down from 6.6% in 2018. Many economists expressed surprise at the first-quarter results coming from China and said they would now have to revise their forecasts for the remainder of the year.
