Contrary to expectations, the Chinese economy recorded a growth of 5.3% in Gross Domestic Product (GDP) in the first quarter of 2024, compared to the same period last year. According to data released this Tuesday (16) by the National Bureau of Statistics of China (NBS), the result exceeded the market projection, which expected 4.6%. In addition, the performance was above the Chinese average.
GDP growth in the first quarter represents an increase of 1.6% compared to the fourth quarter of 2023. However, when the Chinese economy had expanded at a pace of 5.5%. Despite this slight slowdown, the first quarter result indicates that the Chinese economy continues to grow at a healthy pace.
Factors that drove growth
China's economic growth in the first quarter was driven by several factors, including:
- Strong performance of the industrial sector: China's industrial output grew 6.1% in March compared with the same month last year, driven by domestic demand and exports;
- Recovery of the services sector: The services sector, which had been hit hard by the COVID-19 pandemic, showed signs of recovery in March, with growth of 4.3% compared to the same month in 2023;
- Infrastructure investment: The Chinese government continued to invest in infrastructure in the first quarter, which helped boost economic growth.
Challenges and perspectives for the future
Despite positive growth in the first quarter, the Chinese economy still faces some challenges. Among them are the war in Ukraine and the Chinese government's “zero Covid” policy. However, analysts expect the Chinese economy to continue growing at a moderate pace in 2024. GDP expanding between 5% and 5.5%.
The strong performance of the Chinese economy in the first quarter is a positive sign for the global economy. China is the second largest economy in the world and its growth has a significant impact on the rest of the world.
It is important to highlight that these data are preliminary. However, the final GDP for the first quarter of 2024 may be subject to future revisions.
Image: Reproduction/Internet
