China’s economy grew 18.3% year over year in the first quarter of 2021, the strongest quarterly growth on record, according to the National Bureau of Statistics press release. The growth was driven by a surge in retail sales, industrial production, and investment in fixed assets.
China’s first quarter retail sales rose 34% from a year ago, while fixed-asset investment in urban areas gained almost 26%, as industrial production gained by more than 24%
Growth was also fueled by trade as imports jumped more than 38% last month while exports expanded by nearly 31%
China’s growth reflects the deep slump in activity in early 2020 but keeps the world’s second largest economy on track for growth of between 8% and 9% in 2021.
China’s National Bureau of Statistics is confident of maintaining the current recovery momentum throughout the year.
Earlier this month, the International Monetary Fund raised its growth estimate for China to 8.4% this year, more than the government’s 6% target.
Chinese stocks and the Yuan are currently gaining, Hang Seng Index is up 0.61%, USDCNY is down 0.02%
