China’s economy is off to a strong start in 2025, surprising many experts with a 5.4% year-on-year GDP growth in the first quarter. This impressive performance surpasses expectations and signals a rebound in consumer confidence despite global economic pressures.
What’s behind this unexpected surge? According to economists, a combination of factors has fueled China’s resilience amid internal and external challenges.
“China’s economic policies have been effective in boosting domestic demand,” says Anthony Chan, former global chief economist at JPMorgan Chase. “We are seeing increased consumer spending and a recovery in key sectors like manufacturing and services.”
William Lee, chief economist and executive director at the Milken Institute, agrees. “China has been navigating the complex global economic landscape with strategic investments and trade partnerships. This approach has helped mitigate the impact of global uncertainties.”
At the same time, Chinese consumers are showing renewed confidence. “The rising consumer confidence is a strong indicator of economic health,” notes Liu Baocheng, dean of the Center for International Business Ethics at the University of International Business and Economics. “People are willing to spend again, which fuels growth across various industries.”
Despite facing headwinds such as global inflation and supply chain disruptions, China has managed to maintain robust growth. This not only benefits the domestic economy but also has positive implications for global markets.
As the world’s second-largest economy, China’s performance is closely watched. The surprising Q1 growth suggests that with the right policies and consumer support, economies can bounce back even in challenging times.
