China’s G.D.P. Stronger Than Expected, Led by Infrastructure Spending
The New York Times • • general
Key Points:
- China's economy grew 1.3 percent in the first quarter compared to the last quarter of 2025, indicating an annualized growth rate of about 5.3 percent if sustained throughout the year.
- Year-on-year GDP growth was 5 percent in Q1, slightly surpassing economists' forecasts of 4.8 percent, partly due to revised weaker economic data from the first half of last year.
- Consumer spending remained weak, with retail sales up only 2.4 percent year-on-year in Q1 and car sales falling 17 percent following reduced government subsidies.
- Strong investment in infrastructure, particularly an 8.9 percent increase in construction spending, helped offset weak consumer demand and a shrinking trade surplus.
- The service sector continues to struggle, exemplified by widespread restaurant closures and declining business for chains like Xiao Nan Guo, which significantly reduced its number of outlets.
