According to the official figures for the first quarter of 2017, China’s economy grew by 6.9%. The growth rate is higher than what most of the economists had forecast.
The growth rate is measured in comparison to the expansion in the same three months of the previous year.
The infrastructure spending led by the state and demand for new property worked as a catalyst in helping the world’s second largest economy grow.
China had cut its growth target last month; it moved the figure from 6.7% for 2016 to 6.5% for this year.
China’s National Bureau of Statistics said that the growth owes to the momentum from last year, and China is on course to accomplish its growth target for this year.
“The economy maintained momentum from the second half of last year, getting off to a good start in 2017 and laying a solid foundation for accomplishing the whole-year growth target.”
Other relevant data also hint at rising domestic consumption. For example, the retail sales in the month of February saw a 10.9% jump from the previous year.
Being the second largest economy in the world, China is a key player in the global economy, and investors around the world closely monitor its performance. China’s growth for 2016 was its slowest in 26 years.
An economist with the Mizuho Research Institute in Tokyo, Hidenobu Tokuda said that China would aim to slow down its growth in the long run, but “uncertainties” remain high” about how that slowdown would occur.
Brian Jackson of IHS Global Insight meanwhile predicted that the property sector and industrial output would slow down.