China’s Economy Resilient in Q1, Iran Conflict Clouds the Outlook

Key Takeaways

• China’s economy grew by 5% in the first quarter of the year, bolstered by a surge in exports in the first two months.
• Growth dropped off in March due to weaker global demand and higher energy costs following the start of the Iran war.
• Global uncertainties reinforce Beijing’s need to address structural consumption weaknesses, but budget constraints will hinder progress.