China’s GDP grows 6.8 percent year-on-year in Q1

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China’s economy expanded 6.8 percent year-on-year in the first quarter of this year, slightly exceeding expectations, the National Bureau of Statistics (NBS) said on Tuesday.

The GDP stood at 19.88 trillion yuan (about 3.2 trillion US dollars) in the first three months of the year, indicating continued resilience in the world’s second-largest economy.

"The economy is off to a good start," NBS spokesperson Xing Zhihong told a press conference.

Good economic performance

The growth rate in the January-March quarter remained unchanged from the previous quarter. It stayed within the range of 6.7 percent to 6.9 percent for 11 quarters, according to Xing.

China set GDP target of around 6.5 percent for the full year, and the first quarter data gave policymakers more space to step up efforts to reduce financial risks.

Service industry grew 8.1 percent, playing an increasing role in the country’s GDP.

Industrial production increased at a stable pace, and the jobless rate and inflation kept stable.

More balanced foreign trade

Shanghai Yangshan deepwater port /VCG Photo

In the first three months, China’s trade volume maintained fast growth, reaching 1.08 trillion US dollars, 9.4 percent up year-on-year.

The country’s trade surplus narrowed substantially, with import growth outpacing export growth.

During the recent Boao Forum for Asia, Chinese President Xi Jinping said that the country is committed to further opening-up to foreign investors, including easing restrictions on industries such as automobiles, ships and aircrafts, as well as lowering tariffs on imported cars.

World Bank’s confidence in China

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“In general, if China is going to continue to grow at an accelerating rate. We think the consumption will play a major role…. be in a driver seat in China, probably to the medium terms,” John Litwack, leading economist for China at the World Bank told CGTN.

“We’d really like to see the financial sector, the banking sector of China move much more toward commercial basis,” said Litwack, commenting on China’s efforts to open up its financial sectors.

(CGTN's Xu Xinchen and Zou Yun contributed to the story.)