Beijing: According to official data released by Beijing, China's economy grew by 5.4% in the first quarter of this year compared to the same period last year. This growth has surpassed analysts’ expectations, who had forecasted a 5.1% increase for the January to March period.
Despite the stronger-than-expected performance, economists are cautious about the months ahead. With the ongoing trade war with the United States, prospects for sustained economic momentum throughout the rest of the year appear dim.
The economic figures cover the period before U.S. President Donald Trump raised tariffs on Chinese imports from 10% to a staggering 145%. Analysts believe that a part of this growth may be attributed to what’s known as "front-loading" — a practice where Chinese manufacturers ramped up production and exports in anticipation of impending tariffs.
The Chinese government has set a modest growth target of around 5% for the year. However, experts warn that achieving this goal may be challenging due to several headwinds, including a persistent property crisis, weakening domestic demand, and the continued impact of U.S. tariffs on Chinese goods.
With increasing pressure from trade tensions, Beijing is likely to face mounting challenges and may be compelled to implement new measures to reduce rising business costs and stabilize the economy.
