China's economy grew faster than expected in the first three months of the year, even as countries around the world feel the impact of the US-Israel war with Iran. Gross domestic product (GDP) rose by 5% in the period, compared to a year earlier, according to official data. Economists had expected the figure to come in at around 4.8%. That came despite the conflict in the Middle East, which started on 28 February, severely disrupting global energy supplies, with Asian countries hit particularly hard.
This growth marks the first release of official GDP figures since Beijing cut its annual economic growth target last month to a range of 4.5%-5%, its lowest expansion goal since 1991. The rebound from a weaker expansion of 4.5% in the previous quarter was driven by manufacturing, while the world's second largest economy continues to be weighed down by falling property investment. Cars and other exports were a 'major bright spot' in the data, said Kyle Chan, an analyst from the Brookings Institution.
The full effects of the Iran war are yet to be seen, with Chan noting that next quarter's GDP figure is likely to be weaker due to trade disruptions caused by the conflict. China currently faces a 10% tariff on most of its exports to the US, with the possibility of restored tariffs looming, further complicating the trade situation. A recent surge in imports, nearly 28% in March, indicates rising costs globally, fueled by the Iran conflict, which has affected prices in multiple sectors, including energy.
This growth marks the first release of official GDP figures since Beijing cut its annual economic growth target last month to a range of 4.5%-5%, its lowest expansion goal since 1991. The rebound from a weaker expansion of 4.5% in the previous quarter was driven by manufacturing, while the world's second largest economy continues to be weighed down by falling property investment. Cars and other exports were a 'major bright spot' in the data, said Kyle Chan, an analyst from the Brookings Institution.
The full effects of the Iran war are yet to be seen, with Chan noting that next quarter's GDP figure is likely to be weaker due to trade disruptions caused by the conflict. China currently faces a 10% tariff on most of its exports to the US, with the possibility of restored tariffs looming, further complicating the trade situation. A recent surge in imports, nearly 28% in March, indicates rising costs globally, fueled by the Iran conflict, which has affected prices in multiple sectors, including energy.
