China’s Q1 economic growth beat expectations ahead of new tariffs

China's economy performed better than anticipated in the first quarter of 2025, with exports flowing into the United States before the imposition of new tariffs.

Government data released today, April 16, showed that China's gross domestic product (GDP) grew by 5.4% year-on-year (YoY) in Q1 2025, surpassing expectations of 5.2% rise.

“We should be aware that the external environment is becoming more complex and severe, the drive for growth of effective domestic demand is insufficient, and the foundation for sustained economic recovery and growth is yet to be consolidated,” China’s National Bureau of Statistics said in a statement.

“We must implement more proactive and effective macro policies,” it added.

Industrial production rose 7.7% YoY in March, marking the fastest growth rate since June 2021. Retail sales also advanced 5.9%, the best pace since December 2023 and above expectations of 4.3%, data showed.