(MENAFN) China's economy has started the year on a robust footing, as indicated by a report from the Bank of China (BOC) released on Monday. The report forecasts a year-on-year gross domestic product (GDP) growth of approximately 4.8 percent for the first quarter, signaling a positive trajectory for the world's second-largest economy.
One of the key drivers behind China's economic resilience is the favorable external environment. Global demand is showing signs of recovery, and international trade sentiment is on the upswing, which bodes well for China's export growth. These external factors have provided a tailwind for China's economic performance in the early months of the year.
Internally, China's economy has demonstrated strong intrinsic growth momentum across various sectors. Consumption has surpassed expectations, reflecting resilient consumer demand despite lingering uncertainties. Moreover, manufacturing investment has gathered pace, fueling production growth and underpinning the economy's steady recovery. Additionally, there is a noticeable trend towards industrial upgrading and transformation, indicating China's commitment to enhancing its economic resilience and competitiveness.
Looking ahead to the second quarter, the report remains optimistic about China's economic prospects. It forecasts GDP growth to further accelerate to around 5.1 percent, driven by the potential for service consumption to be further unleashed. As China continues to transition towards a consumption-driven economy, the expansion of the services sector is expected to play a significant role in driving overall economic growth.
Furthermore, the report anticipates a significant boost from fiscal policy measures in the coming months. With a focus on infrastructure investment, fiscal policy is poised to provide substantial support to sustain high growth rates and promote economic stability. This comprehensive approach to policy support underscores China's commitment to fostering sustainable growth and navigating potential headwinds in the global economic landscape.
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