China's economic growth in Q1 2026 better than analysts expectation

China's economy expanded 5% in the

first quarter compared with a year earlier, according to

official data on Thursday, surpassing analysts' expectations as policymakers prepare for potential fallout from the Iran

conflict.

Economists polled by Reuters had projected a 4.8%

year-on-year expansion for the January-March period, following a

three-year low growth rate of 4.5% in the fourth quarter.

On a quarterly basis, GDP grew 1.3% in the first quarter,

matching forecasts and just ahead of the 1.2% gain in the

previous quarter.

KEY POINTS

* Q1 GDP +5% y/y (forecast +4.8%, Q4 +4.5%)

* Q1 GDP +1.3% q/q (forecast +1.3%, versus +1.2% in Q4

* March industrial output +5.7% y/y (forecast 5.5%)

* March retail sales +1.7% y/y (forecast +2.3%)

* January-March fixed asset investment +1.7% y/y (forecast

+1.9%)

* January-March property investment -11.2% y/y

MARKET REACTION

Both China's blue-chip CSI300 Index and the

Shanghai Composite Index extended gains after the data

release, up 0.7% and 0.4%, respectively, as of 0220 GMT. China's onshore yuan was little changed in response to the

data.