China’s GDP grew 18.3% year-on-year in the first quarter. Quarterly growth slowed to 0.6% in the first quarter, compared to 2.6% in the last three months of 2020.
The interannual data is the highest percentage of growth ever recorded by the statistics of the Asian giant.
The Chinese economy grew 18.3% in the first quarter, the fastest pace since China began its records three decades ago . The explosion has been contributed by both the post- pandemic recovery in China, comfortably settled in the old normality, and the contrast with the dire picture of last year, when quarantines and company closures paralyzed the country and plunged GDP by 6.8% .
That reference already anticipated that the National Statistics Office (ONE) would announce a record figure this morning and experts, in fact, had even predicted a few tenths higher. Industrial production grew 14% , retail sales increased 34.2% and investment in fixed assets rose 25.6%.
The rebound rests on the good health of exports , especially medical and technological products that a world still battered by the virus needs, and the stimulation of domestic consumption and industrial production.
Liu Aihua, spokesman for the ONE, alluded to the positive factors but warned that the exit from the tunnel is still far away. “The coronavirus epidemic is still spreading throughout the world, the international context is complicated, the pillars for domestic recovery are not yet solid and some small companies and the service sector suffer production and operational difficulties,” he said this morning.
Rising inflation and flat- growing debt are the main threats. China has watered aid to its most affected sectors but, with the economy back on track, it has announced that it will reduce fiscal and monetary stimuli . According to international analysts, Beijing’s order to banks to reduce credit volumes may damage several productive sectors.
Economic policies and the rapid control of the coronavirus explain that the Chinese economy, with a growth of 2.3%, was the only one of the large ones that avoided the red numbers last year . Beijing has predicted that it will close this year with an expansion of 6%, judged to be very conservative by experts, who place it at around 8%.