- China’s GDP rises while other economies face a slowdown in growth due to interest rates.
- China is experiencing remarkable economic growth compared to the United States, Europe and the rest of Asia.
- Growth of 4.5% in the first quarter supports the annual outlook for 6% growth in 2023.
China’s first-quarter GDP posted a notable increase, while its global peers in the West face a slowdown in growth in line with central banks’ decision to raise interest rates to prevent further rising inflation.
According to the statistical office of China, the country’s gross domestic product grew 4.5 percent between January and March, the largest increase in months.
The rise is also higher than expected by analysts, who spoke of 4 percent.
The data for the first quarter of 2023 was expected with expectations because it was the first in which there were no restrictions related to the pandemic, which were in force for almost three years in the country led by Xi Jinping.
According to the official report, retail sales rose 10.6 percent in March thanks to the advancement of online sales of physical products; and industrial production rose 3.9 percent, just below forecasts.
That is to say, the Chinese left their houses to buy in the stores as they had not done for years.
The Chinese economy had grown 3 percent throughout 2022, below Beijing’s official target of 5.5 percent growth.
For 2023, taking into account what happened in 2022, the government has set a more modest growth target of “close to 5 percent.”
China, actor clave
Data from China is very important to most market segments because the Asian powerhouse plays a major role in shaping the global economy.
Over the past decades, China has experienced unprecedented economic growth, becoming the world’s second largest economy and a key player in global trade and investment.
Compared to other major economies such as the United States, Europe and the rest of Asia, China’s economic growth has been remarkable.
According to the World Bank, China’s GDP surpassed that of the United States in purchasing power parity (PPP) terms in 2014, making it the world’s largest economy by that measure.
China’s GDP growth has consistently outpaced that of other major economies, with an average annual growth rate of around 9.6 percent between 1990 and 2020.
For comparison: The average annual growth rate for the United States was about 2.3 percent over the same period.
Suffice it to say that China is the world’s largest exporter, with a share of about 13.5 percent of world merchandise trade (2022, World Trade Organization).
China’s economy in 2023
For Goldman Sachs, China’s 4.5 percent Q1 2023 growth supports its annual outlook: that the economy of the Asian giant grows by 6 percent.
In parallel with the growth data, retail inflation in China was reported to have hit a 1.5-year low in April.
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