Chinese economy accelerates as GDP expands to 4.5% in Q1 2023

Posted on April 24, 2023   |  

In the first 3 months of 2023, the gross domestic product grew annually by 4.5%, faster than the 2.9% in the previous quarter. The figure surpassed analyst predictions for a 4.0% increase and marked the most robust growth in a year.

Beijing is back on its track to fulfill its growth goal for the year and also softening the global economy's downturn. 

In March, retail sales soared 10.6% from a year earlier, the biggest monthly increase since June 2021.

The recovery in consumption will likely comfort policymakers and encourage them to ignore applying an amount of macroeconomic stimulus and start to soften the generosity of monetary policy.

In March, industrial output grew by 3.9% compared to a year ago, lower than the average estimate of 4.4%, and retail sales soared to 10.6%.

In Q1 2023, fixed-asset investment grew by 5.1%, lower than the median forecast of 5.7%, and property investment decreased by 5.8%.

The unemployment rate eased to 5.3% from 5.6% in February and the youth unemployment rate soared to a record high of 19.6%

China is essential to the global economy in 2023 as the US and Europe struggle due to high energy costs and consumer inflation, which is preceding wage growth, and limiting consumer spending.