China’s economy expanded 5.0% year-on-year in the first quarter of 2026, according to official data released by the National Bureau of Statistics on April 16, 2026. The figure slightly exceeded economists’ expectations of 4.8% growth and marked a steady start to the year amid ongoing challenges in consumer spending and property markets.
The growth was driven by strong investment in infrastructure and manufacturing, which offset weaker retail sales and a narrowing trade surplus. Fixed asset investment rose 1.7% year-on-year, while industrial output increased 6.1%. Retail sales, however, grew only 2.4%, reflecting continued caution among households amid falling property prices and reduced wealth effects.
Exports showed notable strength, with total goods imports and exports rising 15.0% compared to the same period last year. This growth was particularly pronounced in high-tech sectors, including electric vehicles, which saw exports jump 78%, and lithium batteries, whose shipments increased significantly. These gains helped counterbalance softer domestic demand.
The urban survey unemployment rate averaged 5.3% during the quarter, indicating relative stability in the labor market despite sectoral shifts. Officials noted that the base effect from weaker-than-previously-reported performance in the first half of 2025 contributed to the year-on-year growth appearing more robust than it might otherwise have been.
Government policymakers emphasized that the economy had achieved a “excellent start” to the year, citing efforts to stabilize employment, support businesses, and develop new quality productive forces. Infrastructure investment grew 8.9% in the quarter, reflecting continued policy focus on boosting domestic demand through public works.
While consumer activity remained subdued — particularly in the restaurant and retail sectors — analysts pointed to the resilience of export-oriented manufacturing and strategic emerging industries as key buffers against broader economic headwinds. The data suggests a transition in China’s growth model, with external demand playing an increasingly important role in supporting overall expansion.
Looking ahead, economists will monitor whether the momentum in exports and investment can be sustained amid global trade uncertainties and persistent deflationary pressures in the housing sector. The next major economic data release is expected in mid-May, covering April’s industrial production, retail sales, and fixed asset investment figures.
For ongoing coverage of China’s economic performance and policy developments, readers are encouraged to follow official releases from the National Bureau of Statistics and trusted international financial news sources.