Insignia Consultants | China Q1 GDP growth beats expectations, but US tariff shock dims outlook
China Q1 GDP growth beats expectations, but US tariff shock dims outlook
BEIJING, April 16 (Reuters) - China's first-quarter economic growth beat expectations, underpinned by solid consumption and industrial output even as policymakers brace for the impact of U.S. tariffs that analysts say pose the biggest risk to the Asian powerhouse in decades.
President Donald Trump has ratcheted up tariffs on Chinese goods to eye-watering levels, prompting Beijing to slap retaliatory duties on U.S. imports in an intensifying trade war between the world's two biggest economies that markets fear will lead to a global recession.
Data on Wednesday showed China's gross domestic product (GDP) grew 5.4% in the January-March quarter from a year earlier, unchanged from the fourth quarter, but beat analysts expectations in a Reuters poll for a rise of 5.1%.
The outlook is expected to dim, however, as Washington's tariff shock hits the crucial export engine, heaping pressure on Chinese leaders as they try to keep the world's second-largest economy on an even keel and prevent mass job losses.
Government stimulus boosted consumption and supported investment, said Xu Tianchen, senior economist at the Economist Intelligence Unit, calling the 5.4% pace "a very good start."
