The Chinese economy grew stronger than expected at the beginning of this year, partly thanks to robust factory activity.
Gross domestic product grew by 5.3% in the first quarter compared to a year ago, according to figures from the National Bureau of Statistics. That was better than a Reuters poll of economists estimated 4.6% growth. Growth also accelerated from 5.2% growth in the previous three months.
Last month, an official survey showed that China’s purchasing managers’ index (PMI) rose for the first time in six months. The Caixin/S&P manufacturing PMI also reached its strongest reading in more than a year as foreign demand strengthened.
China has set an annual growth target of around 5% for 2024, which many analysts see as ambitious as consumer and business confidence remains weak and the real estate sector is in a prolonged downturn.
Authorities cut interest rates this year to boost bank lending and accelerate central government spending to support infrastructure investment.
This is a developing story and will be updated.
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