(Yicai) April 16 -- China’s gross domestic product expanded 5.4 percent in the first quarter from a year earlier, outstripping expectations along with a number of other economic indicators thanks to broad supportive measures.

GDP reached CNY31.9 trillion (USD4.4 trillion) in the first three months of the year, according to preliminary figures released by the National Bureau of Statistics today. 

The rate of increase was faster than the 5.3 percent recorded in the first quarter of last year and the 5 percent for the whole of 2025 as well as the average 5.13 percent predicted by chief economists surveyed by Yicai.

Since the beginning of the year, the adverse effects of changes in the international environment have deepened, and the challenges of domestic economic structural adjustment are ongoing, NBS Deputy Director Sheng Laiyun said at a press conference today.

In response to this complex situation, China has stepped up the rollout of proactive economic policies, effectively responded to the external headwinds, and achieved a strong start to the year, Sheng added.

Several other economic gauges also came in better than expected. In March, large enterprises reported a 7.7 percent year-on-year increase in industrial added value, up from 5.9 percent in January-February (the two months are combined due to the moving date of the Chinese New Year holiday.) This also exceeded the 5.77 percent average forecast by the chief economists.

Retail sales of consumer goods rose 5.9 percent in March, a step up from 4 percent in January-February and higher than the 4.16 percent that the economist expected. Fixed-asset investment climbed 4.2 percent, slightly above both the 4.1 percent growth in January-February and the predicted 4.07 percent.

Sheng noted that China will continue implementing more proactive economic policies to boost domestic circulation, fully energize all types of business entities, and actively respond to external uncertainties to keep the economy on a stable upward track.

This quarter, economic policies are expected to stay focused on key areas such as consumption, the real estate and stock markets, as well as private enterprises, according to Wu Chaoming, chief economist at Chasing Financial Holdings. He added that further monetary easing is likely, including cuts in the reserve requirement ratio and interest rates, along with structural financial tools to encourage consumption.

In the first quarter, inflation remained low. The consumer price index dipped by 0.1 percent year on year, while the producer price index, which tracks factory-gate prices, dropped by 2.3 percent, the NBS said earlier.

China’s average surveyed urban unemployment rate stood at 5.3 percent in the three months, up slightly from 5.2 percent. Meanwhile, per capita disposable income rose 5.5 percent to CNY12,179 (USD1,662).

Editors: Dou Shicong, Emmi Laine