China’s Q1 GDP data points to strong economic stability

Source:Global Times Published: 2018/4/17 15:08:39

China's first quarter GDP data points to strong economic stability and sustainability, but experts predict that the country's whole-year economic growth will moderately decline.

China's GDP expanded 6.8 percent year-on-year in the first quarter of 2018 to 19.88 trillion yuan ($3.16 trillion), data from the National Bureau of Statistics showed Tuesday.

"The GDP data points to stability in the Chinese economy, thanks mainly to an acceleration in property investment and strong private consumption. Investment growth in the previously struggling northeastern region exceeded the national average, reducing the drag on overall investment. A recovery in car sales supported a firming in retail sales," Yue Su, China economist at the Economist Intelligence Unit, told the Global Times on Tuesday.

Liu Dongliang, a senior analyst at China Merchants Bank, said these figures indicate strong stability and sustainability in China's economy. "The whole-year economic growth will likely drop moderately, but it's not difficult to reach this year's target."

Challenges for the remainder of the year include managing expected excessively strong investment growth in the services sector while encouraging a revival in weak industrial and manufacturing investment, Su said.

With the central government still tightening real estate companies' access to credit and focused on controlling household leverage ratios, the sector will likely cool later in the year. The central government is also tightening the approval of infrastructure projects due to local government debt concerns, she said.

Posted in: ECONOMY

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