China's GDP grows by 5.4% as US trade tensions raise further concerns
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China's National Bureau of Statistics (NBS) has released its report on the country's gross domestic product for the first quarter of 2025, showing an increase of 5.4%, surpassing analysts’ expectations of 5.1%. The Chinese government agency attributed this improvement to various macroeconomic policies implemented by the government, although geopolitical and trade tensions with the United States continue to loom in the background.
Another significantly improved macroeconomic figure is China’s industrial production, which grew by 7.7% year-on-year, compared to a forecast of 5.9%. Retail sales also rose (+5.9%), which is a key benchmark for analyzing Beijing’s economic outlook. However, domestic demand remains weak due to ongoing issues in the real estate market and the lingering effects of the pandemic. To address the situation, the Chinese government has introduced measures such as state subsidies and initiatives to boost household income in order to stimulate consumption.
Meanwhile, analysts view the Chinese economic data positively, while emphasizing that these market movers — referring to the period prior to the reimplementation of U.S. tariffs — do not yet reflect the repercussions of the current trade and geopolitical tensions between the United States and China. As a result, growth prospects could sharply decline in the coming quarters.
Another significantly improved macroeconomic figure is China’s industrial production, which grew by 7.7% year-on-year, compared to a forecast of 5.9%. Retail sales also rose (+5.9%), which is a key benchmark for analyzing Beijing’s economic outlook. However, domestic demand remains weak due to ongoing issues in the real estate market and the lingering effects of the pandemic. To address the situation, the Chinese government has introduced measures such as state subsidies and initiatives to boost household income in order to stimulate consumption.
Meanwhile, analysts view the Chinese economic data positively, while emphasizing that these market movers — referring to the period prior to the reimplementation of U.S. tariffs — do not yet reflect the repercussions of the current trade and geopolitical tensions between the United States and China. As a result, growth prospects could sharply decline in the coming quarters.