China's first-quarter economic growth beat expectations, underpinned by solid consumption and industrial output even as policymakers brace for the impact of U.S. tariffs that analysts say pose the biggest risk to the Asian powerhouse in decades. - REUTERS
Category
🗞
NewsTranscript
00:00China's first-quarter economic growth beat expectations, even as policymakers brace for
00:06the impact of U.S. tariffs that analysts say pose the biggest risk to the Asian powerhouse in
00:11decades. Data on Wednesday showed GDP grew 5.4 percent from January to March from a year earlier,
00:17beating analysts' expectations in a Reuters poll for a rise of 5.1 percent. Retail sales,
00:23a key gauge of consumption, as well as bank lending topped analysts' forecasts.
00:28Industrial output has also picked up speed as factories rush shipments to beat the latest
00:33tariffs from U.S. President Donald Trump. We have a trillion-dollar trade deficit with China.
00:39Hundreds of billions of dollars a year we lose with China. And unless we solve that problem,
00:44I'm not going to make a deal. However, analysts expect that trend to reverse sharply in the
00:49months ahead as the hefty U.S. levies take effect. Moreover, higher unemployment and persistent
00:54deflationary pressures are fueling concerns over weak demand and point to an uneven economic recovery
01:00following the COVID-19 pandemic. The Reuters poll showed that for 2025, the Chinese economy is
01:06expected to grow at a subdued 4.5 percent pace year on year. That's half a point down from last year
01:12and short of the official target of around 5 percent. Policymakers have repeatedly said the country has
01:18ample room and tools to bolster the economy. Premier Li Qiang this month pledged to roll out more support
01:24measures. Beijing has put boosting consumption as the top priority this year as it tries to cushion
01:30the impact of the Trump tariffs. The ruling Communist Party is expected to hold a meeting later this month
01:36to set its policy agenda for the coming months.