China’s econ­omy roars on

Geelong Advertiser - - BUSINESS BEAT -

CHINA’S econ­omy grew a fore­cast-beat­ing 6.8 per cent in the first quar­ter, of­fi­cial data showed yes­ter­day, over­com­ing Bei­jing’s bat­tle on fi­nan­cial risk and pol­lu­tion and trade ten­sions with the US.

The world’s No.2 econ­omy ex­ceeded the 6.7 per cent growth fore­cast by an­a­lysts and equalled the fourth quar­ter per­for­mance.

“The na­tional econ­omy main­tained the mo­men­tum of steady and sound de­vel­op­ment,” said Xing Zhi­hong, a spokesman for the Na­tional Statis­tics Bureau.

“The eco­nomic per­for­mance con­tin­ued to im­prove and the econ­omy was off to a good start.”

China’s sus­tained growth shows the econ­omy has re­mained re­silient even as Bei­jing kicked its war on pol­lu­tion into a high gear dur­ing the win­ter months by cut­ting pro­duc­tion for many steel smelters, mills and fac­to­ries.

Fears of a trade war with the US have also roiled mar­kets in re­cent weeks, with Wash­ing­ton and Bei­jing ex­chang­ing warn­ings of tit-for-tat tar­iffs on a sig­nif­i­cant por­tion of their bi­lat­eral trade.

The ten­sions have yet to cause real harm to the econ­omy, an­a­lysts say, but that may change in com­ing months when tar­iffs threat­ened by US Pres­i­dent Don­ald Trump are ex­pected to be im­ple­mented.

Mr Trump said on Fri­day his ad­min­is­tra­tion was propos­ing tar­iffs to “save our in­dus­tries for the fu­ture”.

The threat­ened tar­iffs on a $150 bil­lion worth of Chi­nese goods, and $50 bil­lion of US goods, would dent eco­nomic growth on both sides of the Pa­cific, an­a­lysts say.

Pic­ture: AFP

GROW­ING FAST: China's econ­omy grew a fore­cast-beat­ing 6.8 per cent in the first quar­ter, of­fi­cial data shows.

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