China's Economic Growth Beats Expectations Amid Trade Tensions

China's economy grew by 5.4% year-on-year in the first quarter, exceeding expectations amid a tense trade war with the U.S. The growth, driven by fiscal support and strong activity data, might not be sustainable due to the recent U.S. tariff hikes. Analysts foresee more stimulus to counter these challenges.

China's economy unexpectedly surged 5.4% year-on-year in Q1, data from Wednesday revealed, despite looming uncertainties from an intensifying trade war with the United States. Experts predict further stimulus as tariffs strain Beijing's economic outlook.

While analysts anticipated a GDP growth of 5.1%, fiscal support and robust activity stats propelled the economy past forecasts. However, U.S. tariff impositions threaten this momentum. March's industrial output saw a notable 7.7% year-on-year increase, far surpassing the forecasted 5.8%.

Notwithstanding upbeat growth statistics, market analysts stress the risks, citing potential declines in exports and industrial activities due to tariffs. The Chinese government is poised to introduce additional economic measures to bolster demand and counteract tariff-induced slowdowns.

(With inputs from agencies.)