China’s GDP exceeds estimates in the first quarter – 04/17/2023 – Market

China’s GDP (Gross Domestic Product) grew by 4.5% in the first quarter of 2022, above expectations, official data released on Monday (17) showed. The end of strict restrictions against Covid-19 and Beijing’s effort to accelerate growth helped the Chinese economy recover after recording one of its worst results last year.

Analysts polled by Reuters had expected GDP to grow 4% from a year earlier, accelerating from the 2.9% recorded in the fourth quarter.

In the quarterly comparison, Chinese GDP grew 2.2% in the period between January and March, showed data released by the National Bureau of Statistics, in line with analysts’ expectations and above the revised increase of 0.6% in the previous quarter.

Investors have been closely watching Q1 data for clues about the strength of the recovery after Beijing lifted Covid restrictions in December and eased a three-year crackdown on technology companies.

China’s recovery so far has remained uneven, led by growth in consumption, services and infrastructure spending. Lowering inflation and rising bank savings, however, are raising doubts about the strength of domestic demand.

China’s central bank said last week it would maintain ample liquidity, stabilize growth and jobs and focus on expanding demand.

On Monday, the institution extended liquidity support to banks through its medium-term credit facility, but kept the rate on these loans unchanged, an indication that the authorities are not very worried about the prospects for immediate growth.

The government has set a modest target of economic growth of around 5% for this year, after missing its target in 2022.