Economic news

China’s economy grows briskly in the first quarter driven by customer demand

The economy of China expanded by 6.8% in the January-March quarter, a bit exceeding forecasts, thanks to high customer demand, active investment in property, and solid exports.

Strength of the world’s number two economy could support an overall global recovery for some more time, although China is embroiled in a trade conflict with the U.S. that could have a harmful effect on business.

Experts stick to their view that China is going to slowdown in the next quarters because the government makes local authorities cut infrastructure initiatives so as to restrict debt, and because of continuing fall in property sales deriving from stringent controls on acquisitions on the part of government to counteract speculation.

Economic expansion was 80% based on consumption in the first three months of the year. Retail sales of last month increased by 10.1% compared to March, 2017, a little over the expectations and the highest reading in four months, as purchases of nearly everything rose, including clothes, cosmetics and furniture.

Consumption is indeed huge, as cities see a great wage growth, said Iris Pang of ING in Hong Kong. The strength of consumption in China was underrated, she added.

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