China's Q1 Economic Growth Beats Forecasts Ahead of Tariff Impact

China's economy expanded at a faster pace than expected in the first three months of 2025, though its outlook is deteriorating rapidly due to US President Donald Trump's massive tariffs.

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BEIJING -

Gross domestic product grew 5.4 per cent in the first quarter from a year ago, the government said on April 16, more than a forecast of 5.2 per cent.

Both production and consumption indicated unexpected momentum in March, although the data reflects economic activity before massive US tariffs on Chinese goods kicked in.

The improvement is "all in the past now," said Ms Michelle Lam, Greater China economist at Societe Generale. "Stimulus delivery is still pretty urgent. Things can deteriorate fairly quickly, with some high-frequency data showing tariff impact on US-bound shipments."

The impact of the trade war will likely manifest in economic activities starting from April.

Following a surge in China's exports in March, trade activities have likely slowed rapidly in April as global companies paused orders and reduced production.

In a sign that tariff fears overshadowed the rosy quarter, Chinese stocks in Hong Kong extended their losses to as much as 2.9 per cent.