China’s GDP grew 5.3% year-on-year (YoY) in Q1 2024, up from 5.2% in Q4 2023 and higher than market expectations. Driven by the implementation of equipment renewal policies and the recovery of external demand, the rebound in industrial production, manufacturing investment and exports were the main contributors to the growth of China’s economy. Looking ahead, the manufacturing PMI, a leading indicator of production, remained in the expansion zone, indicating a recovery in business prospects. However, challenges persisted in real estate and local government investments, which continue to hinder the recovery of economic growth. In addition, external demand is fraught with uncertainty. Against this backdrop, it is important to strengthen support on the demand side of the real estate sector, and expand fiscal expenditure.
