Beijing’s policymakers have successfully managed to boost China’s economy, which exceeded expectations in the first quarter. Despite the challenges posed by COVID-19, the country’s resilience was reflected in its growth of 5.3% annual pace in January-March, surpassing analysts’ forecasts of around 4.8%.
China’s economy has shown remarkable strength compared to the previous quarter, with growth increasing by 1.6%. This was due to a range of factors, including strong industrial output, growing retail sales and increased fixed investment. These positive signs suggest that the Chinese government’s economic policies are paying off and that demand is coming back.
Despite recent reports of a decline in import and export figures for March and a slowdown in inflation, there are still concerns about weakness in March activity indicators and unpredictable external demand conditions. However, economists like Louise Loo of Oxford Economics believe that these challenges can be overcome if policymakers continue to implement effective measures to stimulate demand.
The Chinese government has introduced fiscal and monetary policy measures to boost the economy, with an ambitious GDP growth target of 5% for 2024. With this goal in mind, it is likely that we will see continued efforts from policymakers to support growth and stabilize the economy in the coming quarters.
