MNI BRIEF: China's Q1 GDP Grows 5.4%, Exceeds Expectations

The Chinese economy unexpectedly grew by 5.4% year-on-year in Q1, outperforming the market consensus of 5.2%, according to data released Wednesday by the National Bureau of Statistics. 

On a quarterly basis, the economy grew by 1.2%. March retail sales accelerated to 5.9% y/y from the 4.0% growth over January-February, beating the 4.2% forecast and hitting the highest level since December 2023's 7.4%.

Industrial production increased 7.7% y/y in March, up from the 5.9% growth in the first two months and outperforming the expected 5.6%. This was the highest reading since June 2021's 8.3%.

Fixed-asset investment accelerated to 4.2% y/y in Q1 to hit a near one-year high, more than the Jan-Feb 4.1% result and in line with expectations. Property investment fell by 9.9%, expanding from the previous 9.8% decline. Infrastructure investment and manufacturing investment grew by 5.8% and 9.1%, compared with the previous 5.6% and 9.0%.