China’s economic growth tops forecasts, war risks loom
Official data show China’s economy grew 5.0 percent in the first quarter from a year ago, beating analysts’ expectations as policymakers braced for the effects of the Iran war.
Analysts polled by Reuters had predicted that gross domestic product (GDP) in the January-March quarter would increase 4.8 percent from a year earlier, compared to a 3-year low of 4.5 percent in the fourth quarter.
On a quarterly basis, GDP grew by 1.3 percent in the first quarter; It matched forecasts and was just above the 1.2 percent increase in the previous quarter.
Risks to the world’s second-largest economy have increased since the Middle East war broke out on February 28.
The conflict has exposed a critical vulnerability: As the world’s largest energy importer and a predominantly export-based economy, China is already severely exposed to an oil shock that has slowed trade, increased factory costs and clouded the outlook for the year.
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