China's economy grows by a record 18.3% in the first quarter

China's economy grows by a record 18.3% in the first quarter

access_time2021-04-16 11:30:07

China just posted its strongest quarterly growth on record as the world's second largest economy continued its robust recovery from the coronavirus pandemic.

GDP growth of 18.3% year-on-year in the first quarter was the strongest since China began keeping records in 1992, and was driven by a surge in retail sales, industrial production and investment in fixed assets.

The big jump reflects the deep slump in activity in early 2020 but it keeps China on track for growth of between 8% and 9% in 2021, economists said, far ahead of the Chinese government's official target of more than 6%.

"We are fully confident that we can maintain the current recovery momentum throughout the year," said Liu Aihua, a spokeswoman for the National Bureau of Statistics at a press conference in Beijing on Friday.

First quarter retail sales jumped 34% from a year ago, while fixed-asset investment in urban areas gained nearly 26%. Industrial production increased by more than 24%.

Retail sales, which took a big hit last year because of the lockdown, had improved because Beijing eased travel restrictions after the Lunar New Year holidays in February, he added. Investments in manufacturing and infrastructure also picked up pace.

Trade also provided a strong boost. Customs statistics released earlier this week showed imports jumped more than 38% last month in US dollar terms compared to a year earlier, a sign that demand within China is picking up. Exports grew by nearly 31%.

Earlier this month, the International Monetary Fund raised its growth estimate for China to 8.4% for this year, saying that "effective containment measures, a forceful public investment response and central bank liquidity support" had facilitated the country's recovery.


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