China's Q1 GDP grows 5%, signaling a strong start to the year

China's gross domestic product (GDP) grew 5% year-on-year in the first quarter of 2026 to 33.42 trillion yuan ($4.9 trillion), data from the National Bureau of Statistics (NBS) showed on Thursday. Other key indicators have also shown solid performance, signaling improved resilience and vitality in the country's growth.

In the first three months of 2026, the value added of China's industrial enterprises above designated size grew by 6.1%, an increase of 1.1 percentage points from the fourth quarter of last year. Notably, value added of equipment manufacturing and high-tech manufacturing climbed 8.9% and 12.5% respectively.

Retail sales of consumer goods, a key gauge of the country's consumption strength, expanded 2.4% year-on-year, reaching 12.77 trillion yuan in the January-March period. The pace is 0.7 percentage points faster than the growth in the fourth quarter of 2025. 

Meanwhile, fixed-asset investment was up 1.7% year-on-year, reversing the 3.8% decline recorded for the whole of last year. Total investment (excluding rural households) reached 10.27 trillion yuan, according to the NBS.

China's foreign trade saw accelerated growth during this period, with total imports and exports coming in at 11.84 trillion yuan and posting a 15% year-on-year growth.

The surveyed urban unemployment rate in China averaged 5.3% in the first quarter of 2026, unchanged from the same period last year.

The NBS noted that production and supply growth accelerated in the first quarter, market demand continued to improve, employment remained generally stable, and prices rose moderately. High-quality development advanced with positive new momentum, indicating the economy has started the year on solid footing with enhanced resilience and vitality.

(With input from Xinhua, Cover from VCG)