China's Q1 GDP May Be Stronger Than Expected

China's economy is likely to see a stronger rebound than expected in the first quarter to about 4% as measures stimulating domestic demand take effect, China Business Network reported citing analysts. The latest Purchasing Managers' Index indicated the economy is recovering at a robust pace, particularly for the non-manufacturing sector, which will fuel companies’ confidence in further investment. Given these conditions, analysts predict the central bank may not cut its policy rates, including rates on the medium-term lending facility, but may guide down the five-year loan prime rate this quarter. However, weak external demand will drag down exports, which will pressure economic performance, they said.