China’s economy expands 6.9% in Q1, strongest economic growth since 2015

Global Business

Container boxes are seen at a port in Qingdao, Shandong province, China, April 17, 2017. China Daily/via REUTERS

The Chinese economy expanded at a pace of 6.9 percent in the first quarter from a year earlier as a government infrastructure spending spree and a frenzied housing market continued to fuel the expansion.
The National Bureau of Statistics (NBS) said on Monday the gross domestic product (GDP) in the first quarter totaled 18.07 trillion yuan ($2.6248 trillion), increasing 6.9 percent year-on-year.
Growth of 6.9 percent was the fastest in six quarters, with forecast-beating March investment, retail sales and exports all suggesting the economy may carry solid momentum into spring. 

“Main indicators were better than expected…which laid a good foundation for achieving the full-year growth goals,” statistics spokesman Mao Shengyong said at a news conference.

But some analysts say the first quarter may be as good as it gets for China, and worry Beijing is still relying too heavily on stimulus and “old economy” growth drivers, primarily the steel industry and a property market that is overheating. 

Story by CGTN and Reuters.