China’s economy is off to a strong start in 2025, reporting a robust 5.4% growth in its gross domestic product (GDP) for the first quarter. According to data released by the National Bureau of Statistics (NBS) on Wednesday, the GDP reached 31.875 trillion yuan ($4.337 trillion), surpassing analysts’ expectations.
The growth was driven by impressive performances across various sectors. The primary sector grew by 3.5%, the secondary sector by 5.9%, and the tertiary sector by 5.3% compared to the same period last year. Industrial production was particularly strong, with enterprises above designated size expanding by 6.5% year-on-year for the quarter and 7.7% in March.
High-tech and equipment manufacturing industries led the way, posting increases of 10.9% and 9.7% respectively. The service sector also showed significant growth, especially in modern services like information transmission, software, and information technology services, which grew by 9.9%.
Agriculture remained solid, with the added value of crop farming increasing by 4.0% year-on-year. The consumer market saw a steady recovery, with total retail sales of consumer goods rising by 4.6% for the quarter and accelerating to 5.9% in March.
Fixed-asset investment continued to rise, with high-tech industry investment growing by 6.5%. The total value of goods imports and exports increased by 1.3%, with exports up by 6.9% to 6.13 trillion yuan. Residents’ per capita disposable income also grew steadily, showing an actual increase of 5.6%.
The NBS report highlighted that China’s economy is continuing to improve overall, with supportive macro policies in place. It noted advancements in high-quality development, enhanced innovation, and the acceleration of new drivers of growth despite a complex global environment.
Economists responded positively to the data while acknowledging challenges ahead. An analyst from a major financial institution commented, “The most pleasant surprise is the strong retail sales, indicating that consumption subsidies are working effectively.”
Another economist noted, “The data looks encouraging as growth helps close the output gap. Both external and domestic demand were strong in the first quarter.”
Addressing concerns about external pressures, an NBS official expressed confidence in China’s economic resilience. “In the short term, high tariffs imposed by other countries may exert some pressure on China’s economy and foreign trade, but it will not change the long-term positive trajectory of China’s economic growth,” he said. “China’s economy has a stable foundation, multiple advantages, strong resilience, and vast potential.”
