China’s economy delivered an unexpectedly strong performance in the first - عرب فايف

 quarter of 2024, growing by 5.4% year-on-year, according to official data released Wednesday. The higher-than-anticipated growth was fueled by a robust rise in exports, even as escalating trade tensions with the United States continue to cast a shadow over the outlook.

Economists surveyed by Reuters had forecast a more modest expansion of 5.1%, down from the 5.4% recorded in the previous quarter. Despite the solid start to the year, ongoing challenges—such as a prolonged property downturn, weaker domestic demand, and renewed tariff pressure from Washington—pose risks to sustaining momentum.

Beijing has set a “around 5%” GDP growth target for the full year, a goal that analysts consider ambitious given current economic headwinds. On a quarterly basis, China’s GDP rose 1.2% between January and March, falling short of the expected 1.4% increase and slowing from 1.6% in Q4 2023.

A key driver of Q1 performance was China’s export sector. Exports jumped over 12% in March and climbed approximately 6% over the first quarter, as companies rushed shipments ahead of the enforcement of new U.S. tariffs. This export boost supported strong industrial activity in recent months.

In retaliation to the mounting tariffs from the U.S.—which are expected to reach up to 145% on Chinese goods—Beijing imposed its own 125% tariffs on American exports, while reiterating its commitment to keeping markets open for trade and investment.

To cushion the economy against these external shocks, Chinese policymakers have pledged broad-based support. Measures under consideration include interest rate cuts and a reduction in the reserve requirement ratio (RRR) for banks, aiming to ease financial conditions and spur lending.

Still, many analysts anticipate a notable slowdown in the coming quarters, as the full impact of the new tariffs materializes and global economic uncertainty persists.