China economy grows 6.8% in Q1, beats forecast

BEIJING: China’s better-thanexpected economic expansion in the first quarter was backed by a pickup in construction and industry, while a slowdown in the services and agriculture sectors dragged on growth, official data showed yesterday.

The construction and manufacturing sector grew 6.3% from a year earlier, accelerating from a 5.7% pace in the fourth quarter, according to more detailed data released by the National Bureau of Statistics a day after quarterly GDP.

China’s economy expanded 6.8% in January-March, beating expectations for a 6.7% gain, riding on the coat-tails of robust property investment and resilient consumer demand.

Manufacturing rebounded early this year after authorities lifted winter pollution curbs and as steel mills cranked up output as construction swung back into high gear.

But economists still expect China to lose momentum in coming quarters as Beijing forces local governments to pare back infrastructure projects to contain their debt, and as property sales cool further due to strict government controls on purchases to fight speculation. More than 100 cities have introduced measures to cool home prices. Still, analysts expect moderate price appreciation in China’s vast number of smaller centres where regulations are less restrictive. – Reuters