China records 5% GDP growth in first quarter, on track for annual target

China’s economy grew 5 per cent year on year in the first quarter of 2026, putting Beijing on track to meet its annual growth target even as the US-Israeli war on Iran continues to cloud the global economic outlook.

The closely watched gross domestic product growth figure, released by the National Bureau of Statistics (NBS) on Thursday, beat the 4.86 per cent forecast by economists polled by financial data provider Wind.

It marked an acceleration from the 4.5 per cent recorded in the last three months of 2025, which was China’s weakest quarterly growth in three years.

Mao Shengyong, deputy director of the statistics bureau, said the economy got off to a solid start in the first quarter, with major macroeconomic indicators improving and new growth drivers gaining momentum.

“However, we should be aware that the external environment is becoming more complex and volatile, the imbalance between strong supply and weak demand is still acute and the foundation for economic growth has yet to be consolidated.”

Retail sales rose by 1.7 per cent year on year in March, the NBS said, beating the Wind poll’s forecast of 1.6 per cent. In the first two months of the year, when data is typically combined to minimise distortions from the Chinese New Year holiday, they rose 2.8 per cent.

South China Morning Post