BEIJING, April 16 – China’s economy grew faster than expected in the first quarter of 2025, expanding 5.4% year-on-year, official data showed on Wednesday, offering a modest boost to policymakers grappling with a worsening trade dispute with the United States and persistent domestic economic challenges.
The growth outpaced analysts’ forecasts of a 5.1% expansion, according to a Reuters poll, and matched the pace seen in the final quarter of 2024. On a quarter-on-quarter basis, gross domestic product (GDP) rose 1.2%, slightly below the expected 1.4% and slower than the 1.6% growth in the previous three months.
The better-than-expected performance comes as Beijing targets “around 5%” GDP growth for the full year — a goal economists say remains ambitious in the face of a prolonged property market slump, weak consumer demand, and renewed U.S. tariffs under President Donald Trump’s administration.
The escalating trade tensions have intensified pressure on Beijing to implement fresh stimulus measures. A senior Chinese official this week accused Washington of trying to “take away Hong Kong’s life” with punitive tariffs, underscoring the geopolitical strain weighing on economic sentiment.
Despite headwinds, Chinese authorities have signaled confidence in their ability to maintain growth momentum. Policymakers have pledged to deploy a range of tools, including interest rate cuts and reductions in the reserve requirement ratio (RRR) for banks, to support liquidity and investment.
“China has ample policy room to underpin growth,” a spokesperson for the National Bureau of Statistics said, adding that authorities would adjust policies as needed to manage risks and support recovery.
Still, analysts caution that structural issues — including high local government debt, youth unemployment, and fragile business confidence — could hamper Beijing’s efforts to engineer a strong rebound. Markets are now closely watching for further policy announcements, particularly around the upcoming Politburo meeting and mid-year economic planning sessions, for signs of a more aggressive stimulus push.
