Four key insights into China's first-quarter economic performance

Cargo vessels sail on Yangtze River in Wuhan, capital of central China's Hubei province. [Photo/Wang Jiang]

China's economy got off to a solid start in the first quarter of the year, with GDP expanding 5.0 percent year on year. Across the board, key indicators showed encouraging performance. Four keywords shed light on the quality and underlying strength of the country's first-quarter economic performance.

Steady Improvement

Preliminary data show that China's GDP reached nearly 33.42 trillion yuan ($4.9 trillion) in the first quarter, growing 5 percent year on year in real terms, an increase of 0.5 percentage points from the fourth quarter of last year.

Breaking down the data, agricultural production remained stable, while industry and services both posted steady growth. The value added of the primary industry reached 1.19 trillion yuan, up 3.8 percent; the secondary industry grew 4.9 percent to 11.61 trillion yuan; and the tertiary industry rose 5.2 percent to 20.61 trillion yuan.

Price levels remained generally stable, with core CPI (Consumer Price Index) which excludes food and energy prices, up 1.2 percent year on year. Investment also rebounded, with fixed-asset investment (excluding rural households) reaching 10.27 trillion yuan, up 1.7 percent and returning to positive growth.

Consumption showed steady improvement, as retail sales of consumer goods rose 2.4 percent year on year to nearly 12.77 trillion yuan, accelerating by 0.7 percentage points from the previous quarter. Employment remained stable, with the surveyed urban unemployment rate averaging 5.3 percent, unchanged from a year earlier.

"Overall, major macroeconomic indicators picked up in the first quarter, new growth drivers expanded rapidly, and the economy achieved a good start," said Mao Shengyong, deputy head of the National Bureau of Statistics.

Workers fulfill overseas orders in a digital and smart workshop of a factory of a hardware manufacturing company in Handan, north China's Hebei province. [Photo/Hu Gaolei]

Strong Resilience

Against a high comparison base from last year's first quarter and a far more complex, challenging global outlook, China's economy delivered a robust opening performance, fully demonstrating its remarkable resilience.

Take foreign trade, for example. In the first quarter, China's total imports and exports of goods reached nearly 11.84 trillion yuan, up 15 percent year on year, the fastest quarterly growth in the past five years. Mao noted that the strong competitiveness of Chinese enterprises, the high cost-effectiveness of their products, and supportive policy measures have helped offset external uncertainties and expand new space for trade.

Energy security also reflects this resilience. "Amid rising global energy prices driven by geopolitical tensions, China has maintained stable and orderly energy supply, with timely price adjustments ensuring sufficient energy for both households and businesses," Mao said.

This stability stems from years of forward-looking efforts to develop new energy industries and build a diversified energy supply system, significantly enhancing the economy's autonomy and stability, he added.

Supported by China's vast domestic market, complete industrial system, and strong supporting capabilities, industrial and supply chains have remained secure and stable, effectively cushioning external shocks. This demonstrates the strong resilience and anti-risk capability of the Chinese industry and provides solid support for overall economic stability.

Innovation-Driven, High-Quality Development

In the first quarter, China's new quality productive forces continued to grow steadily, characterized by high-end, intelligent, green, and upgraded development.

High-end manufacturing and modern services expanded rapidly. The value added of high-tech manufacturing enterprises above designated size rose 12.5 percent year on year, raising its share in total output of industrial enterprises above designated size to 16.9 percent and contributing 2 percentage points to overall growth of industrial enterprises above designated size.

Intelligent development gained further momentum. Output in sectors directly related to artificial intelligence (AI), including electronic materials and integrated circuits, grew by 32.5 percent and 49.4 percent, respectively, highlighting AI's growing role as a driver of economic activity.

Green transformation is also creating new growth engines. In the first quarter, production of lithium-ion batteries and wind turbines rose by 40.8 percent and 30.1 percent, respectively. Exports of the "new trio" -- electric vehicles, lithium batteries, and solar products -- continued to grow rapidly, with electric vehicle exports surging 77.5 percent, contributing to the global transition toward green and low-carbon development.

Meanwhile, traditional industries are being revitalized through steady upgrading, with faster progress in equipment renewal and technological transformation.

Consumers buy smart phones at a shopping mall in Leshan, southwest China's Sichuan province. [Photo/Li Huashi]

Confidence in the Outlook

Looking ahead, China has every reason to remain confident about its economic prospects.

"We have strong institutional strengths, as well as accumulated advantages in industry, market size, and talent. We are fully capable of maintaining stable economic performance and achieving high-quality development throughout the year," Mao said.

With first-quarter GDP growth of 5.0 percent, China continues to rank among the fastest-growing major economies globally. Growth is increasingly driven by innovation, the cultivation of new quality productive forces, and the rapid expansion of new growth drivers.

At the same time, improving demand is creating favorable conditions. Domestic demand contributed 84.7 percent to economic growth in the first quarter, up nearly 30 percentage points year on year. Imports of consumer goods rose 5.4 percent, indicating a gradual recovery in domestic demand, particularly the continued release of potential in service consumption.

"Despite a complex external environment, we have the strength and resolve to meet any risks and challenges," Mao said. "That assurance is built on our past achievements, and we remain confident about the future."