China’s first quarter GDP will increase by 5.4% y/y, hitting expectations

BEIJING (Reuters) – China’s economy rose 5.4% year-on-year in the first quarter. Data was expected and beat expectations on Wednesday, but the escalation of the trade war with the US has darkened the outlook and increased pressure on Beijing.

Analysts voted by Reuters predicted that GDP for the first quarter would expand by 5.1% from the previous year, slowing from 5.4% in the past three months.

Beijing is aiming for economic growth of around 5% this year. Target analysts say they are ambitious given the long-term sluggish property, slowing domestic demand and US President Donald Trump’s sweeping fees for Chinese products.

Quarterly, GDP expanded by 1.2% over the January-March period, below forecast for a 1.4% increase, compared to a 1.6% increase in the last quarter.

Authorities have repeatedly said China has enough policy offices to reduce growth, and have pledged to cut interest rates and reduce the ratio of reserve requirements – cash bank amounts must remain at the right time –

(Fans Kevin and Yukun