What: The world’s second-largest economy reported 4.5% year-over-year GDP growth in the first quarter and retail sales were up 5.8% compared to the same period last year.

Why it is important: For the first quarter, retail sales of consumer goods total USD 167.17 billion and grew 10.6% for the month of March.

According to the National Bureau of Statistics, China’s economy expanded to USD 413.15 billion, beating analysts’ expectations of an estimated 4% growth. Compared to the fourth quarter, the Chinese economy logged 2.9% growth.

Compared to last year’s first quarter, apparel sales rose 9%, cosmetic sales rose 5.9% and gold, silver, and jewelry sales rose 13.6%. E-commerce sales registered 8.6% growth, accounting for 24.2% of total retail sales.

Service sectors have boomed in Q1, driven by Chinese consumers’ pent-up demand post-reopening.

The second quarter is expected to show significant growth due to a low base from last year’s COVID disruptions, while the third and fourth quarters’ growth rates are expected to be lower due to a higher base from the same period last year.

China GDP grew 4.5% in the first quarter, retail sales up 5.8%