In the first quarter of 2021, China’s economy showed signs of improvement.

In the first quarter of 2021, China's economy showed signs of improvement. by Shanghai Paper

China’s gross domestic product (GDP) expanded at a record pace of 18.3% year on year during the Q1 of this year.

As it rebounded from a historic contraction a year earlier, data from the National Bureau of Statistics (NBS) showed Friday.

China recorded a year-on-year contraction of 6.8% in the Q1 of 2020, when the country had to pause its economic activities to contain the spread of COVID-19.

Setting the stage for a dramatic rebound this year.

The official data fell between the estimations range.

Beating the lower forecast of 17.9% from a Nikkei survey

And 18% from a Macquarie poll but weaker than the higher end of 19% from a Reuters poll.

China’s recovery has been led by robust exports, benefiting from the global economic recovery along with greater vaccination efforts and a steady pickup in domestic consumption.

Stronger than the 33.8 % jump seen in the first two months of the year and outperforming the growing pace of industrial output, which registered at 14.1% in March.

In the Q1, online retail of goods grew by 25.8 % from the same period last year, accounting for 21.9% of total retail sales.

Meanwhile, data showed that China’s services sector generated more than 14 trillion yuan in value, reaching 58.3% in the Q1 GDP.

This an expansion from last year’s 54.5%, which vindicates the sector’s pillar role in China’s economy, according to Liu.

Who believes the services sector will get a boost from China’s rising rate of inoculated population and continue to lead China’s economic growth this year.

On a quarterly basis, China’s economic growth rate during the Q1 slowed to 0.6% from a revised 2.6% in the previous quarter.

Due to the wave of new cases right before the Lunar New Year holiday, according to Lu.

Source: The Jakarta Post