MNI BRIEF: China GDP Up 4.5% Y/Y In Q1

China's GDP increased 4.5% y/y in Q1, beating the market consensus of 3.8% y/y and marking the quickest growth within a year, data released by the National Bureau of Statistics on Tuesday showed.

GDP grew 2.2% over the previous quarter, faster than Q4 2022's revised 0.6% q/q increase. The data illustrated the country's continued rapid recovery, with production and consumption rebounding and employment and prices stabilising, the NBS said.

Industrial production increased 3.0% y/y over Q1, higher than the 2.6% consensus, with March growing 3.9% y/y, slightly weaker than the 4.0% forecast. Retail sales registered a 10.6% y/y increase in March – the biggest gain since July 2021 – surpassing expectations for 7% growth and above the 1.8% decrease in December.

Fixed-asset investment in Q1 registered a 5.1% y/y increase, slower than both the 5.5% growth in Jan-Feb period and 5.7% consensus. Property investment fell 5.8% y/y, following the prior 5.7% decrease.

The international environment remains fluid and the foundation for economic recovery is not yet solid, the NBS warned. China must promote high-quality development, implement macro policies in a scientific and precise manner, and expand high-level opening to continue improving the economy, the NBS said.