The Chinese economy, measured by real GDP, expanded by 6.9% in Q1 compared to the same quarter one year ago, which was slightly ahead of economists’ estimates for 6.8% growth. China’s GDP grew 6.8% year-over-year in Q4 and 6.7% in Q3. Q1 was China’s second consecutive quarter of accelerating year-over-year growth and Q1’s growth was the highest since Q3 2015.
The primary industry (agriculture) grew 3.0% year-over-year; the secondary industry (manufacturing) grew 6.4% year-over-year; and the tertiary industry (services) grew 7.7% year-over-year.
Industrial production growth accelerated in Q1 to 6.8% year-over-year, up from 5.8% year-over-year growth in Q1 2016. High-tech industry and equipment manufacturing were the fastest growing segments.
Services production increased 8.3% year-over-year, an acceleration of 0.1 percentage point (ppt) from Q1 2016 year-over-year growth. Information transmission, software and information technology services, and transport, storage and postal services maintained high growth rates.
Investment in fixed assets grew 9.2% year-over-year, an acceleration of 1.1 ppt from Q1 2016 year-over-year growth. Investments in secondary industry grew 4.2% year-over-year, representing about 30% of total fixed investment. Investment in tertiary industry grew 12.2% year-over-year, representing about 60% of total fixed investment. Infrastructure investment rose 23.5% year-over-year. Real estate development grew 9.1% year-over-year while the value of real estate sold was up more than 20% for both commercial and residential buildings.