Beijing (Reuters)-China's economy was 5.4% year-on-year in the first quarter, data showed Wednesday, beating expectations, but a growing trade war with the United States has darkened the forecast and raised pressure on Beijing to introduce more stimulus.
Analysts surveyed by Reuters had expected a Gross Domestic Product (GDP) a first quarter expansion of 5.1% from a year earlier, slowing at 5.4% in the previous three months.
Beijing is aiming for an economic growth of “around 5%” this year, goal analysts say it is ambitious given the decline of prolonged property, sluggish domestic demand and the sweeping tariffs of the US President Donald Trump on Chinese goods.
On a quarter to quarter basis, GDP expanded 1.2% in the January-to-march period, below expectations for a 1.4% rise and compared to a 1.6% increase in the previous quarter.
Authorities have repeatedly said that China has enough policy room to underpin growth, and have promised to reduce interest rates and break the backup ratio – the amount of cash banks must be backed up – at an appropriate time.
(Kevin and Yukun's Phhan