China’s economy has opened 2025 with robust momentum, reporting a stronger-than-expected 5.4% year-on-year GDP growth in the first quarter. The figure, surpassing analyst forecasts, highlights the economy’s resilience amid shifting global dynamics and domestic challenges. Experts point to rebounding consumer confidence, strategic policy support, and export diversification as key drivers of this growth.
Consumer Spending Fuels Recovery
Anthony Chan, former global chief economist at JPMorgan Chase, emphasized that "household spending has shifted from cautious to confident," driven by stabilizing employment and income growth. Retail sales rose 6.8% in Q1, with travel and hospitality sectors seeing double-digit gains as domestic tourism rebounds.
Policy Measures Stabilize Markets
William Lee, chief economist at the Milken Institute, noted that targeted fiscal policies, including tax incentives for tech innovation and green energy, have bolstered private investment. Industrial output grew 7.1%, led by electric vehicles and renewable energy equipment. Liu Baocheng of the University of International Business and Economics added that China’s export sector adapted to geopolitical shifts by expanding trade with ASEAN and Middle Eastern markets, cushioning external pressures.
Navigating Global Headwinds
While challenges like property market adjustments and trade disputes persist, analysts agree that China’s diversified growth strategy—combining domestic consumption, high-tech advancement, and multilateral trade partnerships—positions it to maintain steady expansion. The IMF recently revised its 2025 China growth forecast upward to 4.9%, reflecting renewed international confidence.
