China's Q1 Growth Exceeds Expectations Before Trade War Impact

China's growth was better than expected during the first quarter of the year. The trade war with the USA threatens, however, to slow down growth from this month onwards.

» Published: April 16 2025

China's Q1 Growth Exceeds Expectations Before Trade War Impact
Photo: Andy Wong/AP/TT

China's GDP grew 5.4 percent in the first quarter compared to last year, according to new figures from the country's national statistics bureau. Expectations were at 5.2 percent, according to a survey from Bloomberg.

Retail sales increased by 5.9 percent in March compared to the same month last year. Expectations were at 4.3 percent.

Industrial production increased by 7.7 percent, also more than expected.

The figures, however, concern the period before the US President Donald Trump suddenly raised tariffs in April, which has since escalated into a trade war between the world's two largest economies.

The US tariffs have been raised to at least 145 percent on most Chinese goods – likely a hard blow to China's exports, which constitute an important growth factor.

China is expected to need to quickly boost domestic demand to counteract the impact of the tariffs, including by stimulating consumption and investments.

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By TTTranslated and adapted by Sweden Herald
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