BEIJING – China’s gross domestic product grew 4.5% in the first quarter of the year, boosted by rising consumption and retail sales, after authorities abruptly abandoned a strict “zero-COVID” strategy.
The growth of No. 2 world economy from January to March compared to the same period in 2022 was the fastest last year, and exceeded the 2.9% growth in the previous quarter, according to government data released on Tuesday.
The GDP growth comes amid a revival in consumption, as people flock to shopping malls and restaurants after draconian COVID-19 restrictions were lifted.
In March, total retail sales of consumer goods increased by 10.6% year on year, and grew by 7.1 percentage points compared to the first two months of the year.
Industrial production output, which measures activity in the manufacturing, mining and utilities sectors, grew by 3.9% in March compared to the same time last year.
Fixed-asset investment – where China invests in infrastructure and other projects to drive growth – increased by 5.1% in the first three months of 2023 compared to the same period last year.
Investors are expected to examine China’s first-quarter economic data for signs of recovery after years of harsh lockdowns and a crackdown on industries such as technology and real estate.
Earlier this year, the Chinese government set the economic growth target for this year at “about 5%.” Economic growth last year fell to 3%, hampered by anti-virus controls that led to snap lockdowns and kept millions at home, sometimes for weeks on end.
On Monday, China’s central bank kept rates on one-year policy loans unchanged. Last week, it pledged to increase support for the economy and maintain sufficient liquidity to support growth.
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