China's economy surged in the first quarter after being supported by strengthening consumer spending as well as recovering production and investment from a slump caused by COVID-19 last year.
China’s Gross Domestic Product (GDP) grew 18.3% in the first quarter of 2021 compared with the previous year, but slightly off tracked market expectations of 19%.
This is the strongest growth ever recorded since the data was first released in 1992, driven by strong domestic and global demand, as well as continued fiscal and monetary support, the National Bureau of Statistics (NBS) reported.
The reading also marks a remarkable change from the first quarter of 2020, when the economy experienced a drastic fall under pressure due to the coronavirus, which shrank by 6.8%.
Meanwhile, quarter -on -quarter, China's economic growth slowed slightly by 0.6% in the first quarter compared to the fourth quarter of last year which grew 2.6%.
In addition, NBS also reported a significant jump in retail sales with an increase of 34.2%, well above the expected increase of 28.0%. This indicates a recovery in domestic consumption in China.
Commodity -linked currencies, the Aussie dollar, kiwi and loonie, remained traded higher following the release of Chinese economic data, despite a slight decline in the early Asian session due to the rise of the US dollar.
