China's Economy Grows 5 Percent in First Quarter of 2026
Tokyo (ANTARA) - China’s economy recorded a real growth of 5.0 percent year-on-year for the January-March 2026 period, according to official data released on Thursday.
Official Chinese data indicates that the expansion rate increased from 4.5 percent in the previous quarter, supported by strong export performance despite the US and Israeli offensive against Iran.
The inflation-adjusted gross domestic product (GDP) increase in the world’s second-largest economy, marking the first acceleration in five quarters, aligns with the 2026 growth target of 4.5 to 5 percent.
On a quarterly basis, China’s GDP for the first three months of 2026 grew 1.3 percent compared to the previous quarter, higher than the 1.2 percent growth in the October-December period.
The Iran war, which began on 28 February, has caused supply chain disruptions and a global surge in energy prices, but the negative impact on China’s economy has so far been assessed as limited.
China’s National Bureau of Statistics stated that the economy in the first quarter “started off well with recovery in key macroeconomic indicators and rapid development of new growth drivers.”
“However, we must recognise that the external environment is becoming increasingly complex and unstable, the imbalance between strong supply and weak demand remains pronounced, and the foundation for economic growth is not yet fully solid,” the agency added.
In the January-March period, total exports rose 11.9 percent, while imports surged 19.6 percent.
China’s exports to the US declined due to trade tensions following President Donald Trump’s return to the White House in January last year, but shipments to other Asian countries and the African region increased.
Retail sales of consumer goods grew 2.4 percent year-on-year, while fixed asset investment, excluding rural households, rose 1.7 percent. However, investment in the property sector fell 11.2 percent amid the ongoing crisis in that sector.
Industrial production in China, known as the “world’s factory,” increased by 6.1 percent.
On Tuesday, the International Monetary Fund (IMF) forecast that China’s economic growth would slow to 4.4 percent this year from 5.0 percent in 2025, influenced by the impact of the war in the Middle East and weak domestic consumption.
During the annual parliamentary session in March, China set the 2026 GDP growth target at the lowest level since the early 1990s, amid various challenges including the property sector crisis and global geopolitical uncertainties.
Source: Kyodo