Chinese economy grew more than expected

The Chinese economy grew more than expected in the first three months of 2024. The world's second-largest economy expanded by 5.3% compared to the previous year, surpassing analysts' forecast of 4.6%.

Additionally, it increased by 1.6% in the first quarter compared to the preceding three months. Official data released on Tuesday highlighted that China's economic growth was propelled by the construction of more factories and substantial exports of goods, offering some relief to officials and analysts. To boost growth, China made significant investments in its manufacturing sector, establishing numerous new factories that contributed to the increased sales of solar panels, electric cars, and other products globally. 

Premier Li Qiang aims for a growth target of around 5% in 2024; however, there are indications of continued reluctance to utilize deficit spending for economic stimulus.

By: António Costa, Alcral AG Head of Global Investments