China's economy got off to a better start than anticipated this year. Preliminary estimates show that gross domestic product (GDP) increased by 5.3% year-over-year in the first quarter 2024.
Notably, an ambitious yearly growth goal of "around 5%" was established by China last month.
For the world's second-largest economy, it was better than expected, as BBC reported that some had predicted a slowdown to 4.6% growth in the first quarter, expecially that the property sector crisis was becoming worse. Real estate companies in China saw difficulties over the same time period, as investment in properties dropped 9.5%.
China Dealing with Persistent Crisis in Real Estate Sector
These better-than-expected numbers emerged as China's housing market turmoil drags on.
According to the most recent numbers, March saw the steepest decline in new house prices in over eight years. In January, the liquidation order issued by a Hong Kong court to real estate behemoth Evergrande brought the industry's woes into sharp focus. City courts have also heard winding-up applications against Country Garden and Shimao, two rival developers.
In light of China's mounting financial concerns due to the country's economic distress, credit rating agency Fitch downgraded the country's outlook last week.
But regardless of whether or not it experiences a slowdown, the Asian Development Bank (ADB) has predicted that China's economy would remain the world's top growth engine. The nation's economy grew at a phenomenal pace for many years, with official estimates placing GDP growth at almost 10% annually.
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