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China's Q1 2025 GDP registered outstanding growth at 5.4% year-on-year, better than expected, in tandem with that of the previous quarter. Strong growth in domestic demand and industrial output before the anticipated boost from an upward adjustment of US tariffs drove growth.
Manufacturing picked up strongly, rising 6.5% in Q1 2025 from 5.7% last quarter. Even more importantly, March 2025 recorded an even higher rise in manufacturing production with 7.7% year-on-year. This rise indicates that exporters' producers were stepping up production before new US tariffs.
Retail sales also showed robust growth, increasing by 4.6% year-on-year in Q1 2025. March alone saw growth of 5.9%, which was even higher than January and February combined at 4.0%. Growth carried over into a string of categories, from grain to oil, foodstuffs, home appliances, and personal care, with online also contributing with a 7.9% year-on-year growth in Q1.
