China’s economy grew 4.5 percent year-on-year in the first quarter, higher than expected, supported by policymakers’ move to boost growth after the lifting of strict COVID-19 restrictions in December. But the world’s second economy still faces obstacles and challenges.
Data from the National Bureau of Statistics reflects the recovery of the economy after the disruptions caused by the abrupt lifting of COVID-19 restrictions in December, supported by consumption, services, and infrastructure.
According to International Monetary Fund estimates, China will become the largest contributor to global economic growth over the next five years, with its share expected to rise to double that of the United States.
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The Asian country’s contribution to global GDP growth is expected to reach 22.6 percent by the end of 2028, according to Bloomberg estimates based on figures published by the IMF in its World Economic Outlook report released last week. India follows with 12.9 percent, while the United States contributes 11.3 percent.
Analysts had expected China’s economy to grow at a rate of 4 percent a year after growing at 2.9 percent.
On a quarterly basis, the data showed GDP growth of 2.2 percent in the January-March period.
The Chinese government had set a modest target for economic growth for this year at around five percent, after falling far behind last year’s target.
Although first-quarter GDP exceeded expectations, China still faces significant challenges to maintaining economic growth momentum post-Covid and addressing some weak sectors including real estate and semiconductors.
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