Chinese economy grows 6.9% in Q1

Chinese economy grows 6.9% in Q1

"I think China should be directing the economy to slow down its growth in the long term.but on the contrary, growth is accelerating", said Hidenobu Tokuda, senior economist at Mizuho Research Institute in Tokyo.

While declining to predict the actual growth figures for the quarters ahead, Mao particularly stressed the increasing stability of China's economic performance and its untapped development potential. "I think Beijing prices will definitely rise further".

China's economic recovery is gaining traction, with growth rising to its fastest pace in more than a year in the January-to-March quarter. They added that "this particular contributor to strong growth is most likely just temporary as fiscal expenditure is unlikely to maintain the pace of growth it had in March".

Meanwhile, Beijing home prices rose 0.4% from a month earlier.

The total value of exports was 3,326.8 billion yuan, up by 14.8 percent; the total value of imports was 2,871.8 billion yuan, an increase of 31.1 percent. The annual increase slowed to 11.3 percent, down from 11.8 percent in February. The fast growth seen in fiscal expenditure, according to a report by Goldman Sachs economists including MK Tang and Yu Song, "indicates front loading of fiscal expenditure and is possibly related to the directive from the central government". Sales grew 19.5 per cent in the January-to-March period from a year ago, down from 25.1 per cent in the first two months of the year.

Improvement in industrial production is also a major contributor to the stable growth in the first quarter, according to the NBS.

Growth last was that strong in the July-to-September quarter of 2015. A large increase in Chinese effective interest rates would squeeze Chinese companies' cash flows and might increase stresses on the financial system, even if debt growth remains more moderate.

Forecasters responded by raising full-year growth estimates.

The reading was better than the median analyst expectation of 6.8 percent in an AFP poll.

One measure of consumer earnings slowed.

China's economy grew six.nine percent in the first quarter compared to the first three months of previous year, beating many economists' expectations. "Most of the (tightening measures) are quite marginal".

Also underpinning growth is government infrastructure spending and an ongoing boom in the housing market, which has caused some concerns. Yet developers may find 2017 more challenging, as about a dozen cities have imposed tighter restrictions on purchases to curb a frenzy of speculation.

"Things are pretty strong at the moment, but it's going to be hard to sustain this level of growth given how reliant it is on the state, which will have to pull back at some point", Julian Evans-Pritchard, an economist at Capital Economics, was cited as saying by CNN Money.