China's economy expands by a surprisingly strong pace in the first quarter of 2024

China’s economy exceeded expectations in the first quarter of this year, driven by strong growth in high-tech manufacturing. Gross domestic product (GDP) grew by 5.3% compared to the same period last year, beating estimates. Industrial production rose by 6.1%, with notable increases in the production of 3D printing equipment, charging stations for electric vehicles, and electronic components. However, the foundation for economic stability and improvement is not yet solid. China has set an annual growth target of around 5% for 2024, and the authorities have implemented measures to boost bank lending and infrastructure investment. Retail sales grew by 4.7% during the period, supported by spending in sports, entertainment, cigarettes, alcohol, and catering services. Investment in fixed assets increased by 4.5%, but growth was mainly driven by state-owned enterprises. Meanwhile, investment by foreign companies decreased by 10.4%. Beijing is prioritizing economic growth and aims to attract more foreign investment. China’s economy grew by 5.2% in 2023.