The Chinese economy, for months now, expecting to be on a downward trajectory, surprised investors by reporting a 6.4 percent expansion YoY in the first quarter of 2019. The market forecast according to Reuters had been 6.3%. So what happened to the economic slowdown we all expected?
China saw its economy expand by 6.4% YoY in Q4 of last year and at a 6.8% pace in Q1 of 2018. Industrial production surged past that 5.9% estimate by Reuters coming in at a healthy 8.5%, reporting the fastest growth since July 2014. Retail sales reported stronger than expected as well.
This data could mean that the China economy has bottomed out already and is likely on a rebound, according to some analysts. The trade war between China and the US has taken the edge off global activity but according to these figures released, China has a solid domestic market and has performed surprisingly well in that past 3 months. Note that the country is trying to wean its economy off an excessive reliance on debt to dive growth, with some analysts still worried that China will experience a hard landing.
More on China growth in the coming weeks. We could see more surprises.