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China economy recovers better than expected after Covid reopening

China’s gross domestic product grew 4.5% year-on-year in the first quarter. This was as strong growth in exports and infrastructure investment, as well as recovery in retail consumption and property prices, helped the world’s second largest economy recover.

Official figures beat analysts’ forecasts of a 4% rise, following efforts by Chinese leader Xi Jinping’s government to regain business trust Damaged by last year’s pandemic control and sudden policy changes.

January-March growth still fell short of government announcements Annual target is 5%was curbed earlier this year by the nationwide Covid-19 outbreak, but economists expect the pace to pick up as the year progresses.

President Xi formally enters unprecedented third term ChinaThe president is keen to revive economic growth last month. Gross domestic product last year grew by just 3% and he missed the official target of 5.5%, already the lowest in decades.

“The recovery is definitely on track,” said Tao Wang, chief China economist at UBS.

Hong Kong’s Hang Seng China Enterprises Index rose 0.45% after Tuesday’s data release, but remained down 0.8% on the day. The benchmark CSI 300 index of stocks listed in Shanghai and Shenzhen rose his 0.06%.

“China’s economy recovered steadily and got off to a good start,” the National Bureau of Statistics said in a statement. The foundation is not yet solid,” he warned.

Xi’s new number two, Premier Li Qiang, said at a meeting of China’s rubber stamp assembly this year that the government relax the crackdown on business This has cost billions of dollars to property developers and internet platforms.

China abandoned zero Covid controls in December. Amid mass testing and public opposition to a gradual lockdown that has paralyzed cities across the country for most of the year.

The easing of restrictions has unleashed pent-up demand in the retail sector, with sales growing 5.8% year-on-year in the first quarter and 10.6% in March. A Bloomberg survey of analysts predicted a 7.5% gain in March. But given that Shanghai began a months-long lockdown in March 2022, the base of comparisons to last year was low.

Manufacturing investment was up 7% year-on-year, with industrial output up 3% in the first quarter. Exports showed strong growthincreased 8.4% in the first quarter, state-led infrastructure investment increased 8.8% and total fixed asset investment increased 5.1%. Private investment was weak at just 0.6%, suggesting a fall in March.

The real estate sector continued to struggle, with property investment down 5.8% and regional home sales down 1.8%. New housing starts also continued to decline, dropping 19.2% in the first quarter compared to the same period last year.

However, sales were up 4.1%, signaling an early recovery in house prices. New home prices in March climbed at their fastest pace in 21 months.

The unemployment rate fell to 5.3% in March from 5.6% in February, while youth unemployment reached its second highest on record at 19.6%.

Economists say momentum will pick up in the second quarter, aided by low base effects, but consumption and property may struggle to sustain strong growth, exports threatened by weak advanced markets I warned you of the possibility.

After the crackdown on the private sector, Xi’s government continues to suffer from a lack of credibility, experts say.

Professor at the London School of Economics, new china playbooksaid the biggest impediment was the gap in private sector demand in both consumption and investment.

“It will take time for confidence to return to the Chinese economy,” he said.

Additional report by Hudson Lockett in Hong Kong

Summarize this content to 100 words

China’s gross domestic product grew 4.5% year-on-year in the first quarter. This was as strong growth in exports and infrastructure investment, as well as recovery in retail consumption and property prices, helped the world’s second largest economy recover.Official figures beat analysts’ forecasts of a 4% rise, following efforts by Chinese leader Xi Jinping’s government to regain business trust Damaged by last year’s pandemic control and sudden policy changes.January-March growth still fell short of government announcements Annual target is 5%was curbed earlier this year by the nationwide Covid-19 outbreak, but economists expect the pace to pick up as the year progresses.President Xi formally enters unprecedented third term ChinaThe president is keen to revive economic growth last month. Gross domestic product last year grew by just 3% and he missed the official target of 5.5%, already the lowest in decades.“The recovery is definitely on track,” said Tao Wang, chief China economist at UBS.Hong Kong’s Hang Seng China Enterprises Index rose 0.45% after Tuesday’s data release, but remained down 0.8% on the day. The benchmark CSI 300 index of stocks listed in Shanghai and Shenzhen rose his 0.06%.”China’s economy recovered steadily and got off to a good start,” the National Bureau of Statistics said in a statement. The foundation is not yet solid,” he warned.

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Xi’s new number two, Premier Li Qiang, said at a meeting of China’s rubber stamp assembly this year that the government relax the crackdown on business This has cost billions of dollars to property developers and internet platforms.China abandoned zero Covid controls in December. Amid mass testing and public opposition to a gradual lockdown that has paralyzed cities across the country for most of the year.The easing of restrictions has unleashed pent-up demand in the retail sector, with sales growing 5.8% year-on-year in the first quarter and 10.6% in March. A Bloomberg survey of analysts predicted a 7.5% gain in March. But given that Shanghai began a months-long lockdown in March 2022, the base of comparisons to last year was low.Manufacturing investment was up 7% year-on-year, with industrial output up 3% in the first quarter. Exports showed strong growthincreased 8.4% in the first quarter, state-led infrastructure investment increased 8.8% and total fixed asset investment increased 5.1%. Private investment was weak at just 0.6%, suggesting a fall in March.The real estate sector continued to struggle, with property investment down 5.8% and regional home sales down 1.8%. New housing starts also continued to decline, dropping 19.2% in the first quarter compared to the same period last year.However, sales were up 4.1%, signaling an early recovery in house prices. New home prices in March climbed at their fastest pace in 21 months.The unemployment rate fell to 5.3% in March from 5.6% in February, while youth unemployment reached its second highest on record at 19.6%.

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Economists say momentum will pick up in the second quarter, aided by low base effects, but consumption and property may struggle to sustain strong growth, exports threatened by weak advanced markets I warned you of the possibility.After the crackdown on the private sector, Xi’s government continues to suffer from a lack of credibility, experts say.Professor at the London School of Economics, new china playbooksaid the biggest impediment was the gap in private sector demand in both consumption and investment.“It will take time for confidence to return to the Chinese economy,” he said.Additional report by Hudson Lockett in Hong Kong
https://www.ft.com/content/db9d8080-472c-419b-858f-07799849c5db China economy recovers better than expected after Covid reopening

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