According to a news agency, China’s Gross Domestic Product increased by 18.3 percent in the first quarter of its fiscal year. China’s economy expanded at its fastest rate since 1992 when it began keeping quarterly records.
As a result of the coronavirus pandemic, China’s economy shrank by 6.8% in the first three months of 2020. However, by the end of the previous fiscal year, China had emerged as the only major economy with positive GDP growth. By the end of September, the third quarter of the previous fiscal year, the nation had made up all lost ground.
According to the agency, the rebound has been led by strong industrial output and robust exports as the pandemic fueled demand for Chinese-made medical goods and electronic devices. Stronger demand at home and abroad, as well as continued government support for smaller businesses, boosted the economy in the January-March quarter, according to the news agency.
“China’s first-quarter started well, especially in retail sales, which fueled the economy’s recovery,” Marco Sun, chief financial markets analyst at MUFG Bank in Shanghai, told Reuters. “In the future, the emphasis will be on how to maintain growth when managing financial risk.”
Despite the record GDP growth rate, it slowed sequentially in January-March, falling to 0.6 percent from a revised 3.2 percent in the previous quarter. In reality, the first-quarter growth rate was significantly lower than most forecasts by agencies and economists.