BEIJING, April 16: China's economy expanded more than expected in the first three months of the year, with official data Thursday indicating resilience in the face of a Middle East crisis that threatens to hit global growth.
The figures came despite a surge in world energy prices caused by the US-Israel war on Iran, which has stymied shipping through the crucial Strait of Hormuz, through which a fifth of the world's oil and natural gas passes.
Analysts say China's diversified energy supply shields it from immediate shocks, though a potential global downturn caused by the war could weaken demand for its exports, which have been propping up the country's economy.
Gross domestic product in the world's second-largest economy expanded 5.0 percent year-on-year in January-March, according to the National Bureau of Statistics (NBS).
The reading was slightly higher than an AFP forecast of 4.8 percent based on a survey of economists.
During the first quarter, China's economy "achieved a strong start to the year, further demonstrating its resilience and vitality", the NBS said in a statement announcing the data.
The reading came days after the International Monetary Fund cut its 2026 global growth projection, warning that the world economy could be "thrown off course" by the Middle East war.
It also reduced its forecast for China to 4.4 percent growth, from a previous estimate of 4.5 percent.
"The global economy is facing this next test of resilience as signs of unevenness lie beneath the surface," it said, noting that China's "domestic activity -- especially in the housing sector -- lags behind exports".
Beijing has set a 2026 target of 4.5-5.0 percent growth -- the lowest in decades.
A years-long crisis in the property sector and a persistent slump in domestic spending have left leaders reliant on exports to meet growth targets.
Outbound shipments have boomed, exemplified by the country's whopping $1.2 trillion trade surplus last year. �"AFP
