China's National Bureau of Statistics announced on April 16 that the country's gross domestic product (GDP) grew by 5% year-on-year in the first quarter, accelerating by 0.5 percentage points from the fourth quarter of the previous year. Amid a complex environment, the Chinese economy has delivered a stable performance in the first quarterly assessment of the initial year of the new five-year plan period.
This stability stems from the continued improvement and repair of endogenous drivers. Since the beginning of the year, China has implemented special campaigns to boost consumption, contributing to positive trends in the consumer market. In the first quarter, total retail sales of consumer goods approached 13 trillion yuan, increasing by 2.4% year-on-year, with growth accelerating by 0.7 percentage points compared to the fourth quarter of the previous year. Retail sales of services grew even more robustly, rising by 5.5% year-on-year.
Positive signals have also emerged in the investment sector. Fixed-asset investment nationwide increased by 1.7% year-on-year in the first quarter, shifting from a decline of 3.8% for the full previous year to positive growth. According to Guo Liyan, Deputy Director of the Economic Research Institute at the National Development and Reform Commission, these positive trends are linked to policies that were implemented proactively, focused effectively, and responded forcefully. Guo noted that the launch of several major projects at the start of the year drove infrastructure investment growth to 8.9% year-on-year in the first quarter. Policies such as large-scale equipment upgrades and consumer trade-in programs also supported steady and improved investment performance.
Stability is also a result of the economy's enhanced capacity to withstand external shocks. Despite geopolitical conflicts disrupting global trade and economic activities, China's total goods import and export value reached 11.84 trillion yuan in the first quarter, exceeding the 11 trillion yuan mark for the first time in the same period historically. This represented a 15% year-on-year increase, the highest quarterly growth rate in nearly five years. This performance benefited from market diversification efforts. In the first quarter, China's trade with Belt and Road partner countries totaled 6.06 trillion yuan, an increase of 14.2%, accounting for 51.2% of total import and export value. Trade with ASEAN and Latin America both grew by 15.4%, while trade with Africa surged by 23.7%. Trade with the European Union and the United Kingdom increased by 14.6% and 13.1%, respectively.
Amid global concerns over soaring oil prices, consumer prices in China remained generally stable. The country's consumer price index (CPI) rose by a mild 0.9% year-on-year in the first quarter. Guo Liyan indicated that a reasonable rebound in prices will further smooth the processes of production, distribution, circulation, and consumption, creating a favorable environment for the operation of the national economy.
Furthermore, stability is reinforced by the continued robust growth of new growth drivers. For instance, the value-added of the equipment manufacturing industry, which has attracted significant attention, increased by 8.9% year-on-year in the first quarter, significantly outpacing the overall industrial growth above the designated size. It accounted for 35.1% of the total value-added of major industrial enterprises and contributed nearly 50% to the growth of the entire industrial economy. The high-tech manufacturing sector performed even more impressively, with value-added surging by 12.5% year-on-year in the first quarter. Mao Shengyong, Deputy Commissioner of the National Bureau of Statistics, pointed out that while high-tech manufacturing accounts for less than 20% of the total value-added of major industrial enterprises, it contributed 32.6% to the growth of industrial output above the designated size. Mao stated that through sustained efforts in recent years, high-tech manufacturing has achieved higher technological content, with some sub-sectors gradually transitioning from following and running alongside global leaders to running alongside and even leading in certain areas, demonstrating significant developmental achievements.
Considering industrial data alongside other sectors, it is evident that new growth drivers are increasingly shouldering the responsibility of driving China's economic development.
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