- China’s Economy Expands 6.9% as Retail Pick Up
The world’s second-largest economy grew faster than most analysts anticipated in the first quarter of the year.
China’s gross domestic product surged 6.9 percent from a year earlier, according to the National Bureau of Statistics. This is better than 6.8 percent projected by analysts.
Also, the fixed asset investment increased by 9.2 percent in the first quarter of the year, from 8.1 percent recorded in the preceding year. Suggesting renewed confidence in the Chinese economy following a more friendly relationship between President Donald Trump and President XI.
This surge in business confidence continued to aid job creation and earnings, boosting retail sales to 10.9 percent from a year ago. More than the 9.7 percent expected by most economists.
Accordingly, factory output rose 7.6 percent from a year ago. Further validating a rebound as rising credit continues to bolster investment.
“For the first time in the recent years, China starts a year with a strong headline GDP,” said Raymond Yeung, chief greater China economist at Australia & New Zealand Banking Group Ltd. in Hong Kong, who correctly forecast the growth pace. “Thanks to strong investment and property, the economy is performing well.”
This was after unemployment rate plunged in March from February but the data released shows China added a total of 3.34 million new jobs in the first quarter of the year. Explaining the reason why consumption rose from 64.6 percent it contributed to growth in the first quarter of last year to 77.2 percent this year.
“The rebound in retail sales growth was particularly important as it indicates that consumer spending remains strong,” said Rajiv Biswas, Asia-Pacific chief economist at IHS Markit in Singapore. “The upturn in Chinese growth is a very positive indicator for the Asia Pacific and world growth in 2017, as well as underpinning the near-term outlook for global commodities.”
