China’s economy grew faster than expected in the first quarter of 2025, expanding 5.4% year-on-year to reach 31.875 trillion yuan ($4.337 trillion), according to data released Wednesday by the National Bureau of Statistics. The growth outpaced analyst forecasts and marked a 1.2% quarterly increase from Q4 2024, signaling resilience in Asia’s largest economy.
Key drivers included a 6.5% surge in industrial output among major enterprises, with high-tech manufacturing jumping 9.7% and equipment manufacturing up 10.9%. The tech sector shone particularly bright, as information technology services grew 9.9%, reflecting China’s accelerating innovation ecosystem.
Consumer markets showed gradual recovery with retail sales rising 4.6%, while fixed-asset investment grew steadily. Exports climbed 6.9% to 6.13 trillion yuan, offsetting a modest 1.3% increase in total trade value. Disposable income rose 5.6%, underscoring improved household spending power.
NBS officials highlighted ‘new progress in high-quality development’ despite global headwinds, emphasizing strengthened domestic demand and policy-driven momentum. The agricultural sector remained stable with crop farming output up 4%.
This robust performance offers crucial insights for investors eyeing Asian markets, while academic circles note the structural shifts toward advanced manufacturing and digital services that could reshape regional economic dynamics.
