China Economy Expands by 5.3% Year-on-Year in the First Quarter

Quarter-on-quarter, the Chinese economy grew by 1.6% after expanding by 1.0% in Q4. Economists forecast the economy to grow by 0.9%.

The first quarter figures were significant after Beijing set a growth target of 5.0% for 2024.

Other economic indicators sent mixed signals.

Industrial production increased by 4.5% year-on-year in March after rising 7.0% in February. Retail sales advanced by 3.1% after advancing by 5.5% in February. Economists forecast industrial production and retail sales to increase 5.4% and 4.5%, respectively. The figures signaled a loss of momentum at the end of the first quarter.

However, fixed asset investment and unemployment figures suggested a possible shift in momentum. Fixed asset investment increased 4.5% year-on-year, while the Chinese unemployment rate fell from 5.3% to 5.2%. Economists forecast fixed asset investments to increase 5.3% and the unemployment rate to fall to 5.2%.

The Aussie Dollar Reaction to the Numbers from China

Before the economic indicators from China, the AUD/USD rose to a high of $0.64446 before falling to a low of $0.64081.