China's Q1 2026 GDP Rises 5%, Exceeding Forecasts

China's economy grew by 5 percent in the first quarter of 2026 compared with a year earlier, official data showed on Thursday, exceeding economists' expectations and marking an acceleration from the previous quarter's 4.5 percent expansion.

The National Bureau of Statistics reported the year-on-year gross domestic product increase for January through March, a period that included the start of the war between the United States, Israel, and Iran in late February. On a quarterly basis, GDP rose 1.3 percent, in line with forecasts and slightly above the 1.2 percent gain in the October-December period. The figures reflect a solid start to the year, driven largely by robust exports in the initial two months, though domestic demand showed signs of weakness.

Supporting indicators were mixed. Industrial output in March expanded 5.7 percent year-on-year, surpassing the 5.5 percent forecast, while fixed-asset investment for the quarter grew 1.7 percent, below the anticipated 1.9 percent. Retail sales rose just 1.7 percent in March, missing the 2.3 percent projection, and property investment contracted 11.2 percent over the period. Exports slowed to 2.5 percent growth in March from stronger...