China GDP Growth Beats Forecast At 6.4%

The mainland's economy beat forecasts as it remained steady with 6.4 percent growth in the first quarter amid tepid global demand, a US trade war and a debt battle, official data showed on Wednesday.

The growth figure released by the National Bureau of Statistics was the same as the last quarter of 2018 and better than the 6.3 percent forecast by analysts polled by AFP.

"The national economy enjoyed stable performance with growing positive factors and stronger market expectation and confidence, sustaining the momentum of progress in overall stability," the NBS said in a news release.

Top policymakers huddled in Beijing last month announced major plans to support the flagging economy, announcing massive tax cuts, fee reductions and financing support.

Premier Li Keqiang in March laid out a lower growth target this year of 6.0-6.5 percent.

Beijing is counting on consumers and renewed investment to stabilise the economy. Unemployment rate dropped to 5.2 percent in March from 5.3 percent in February.

The latest data showed growth in retail sales for March rising 8.7 percent on-year after stagnating for three months near 15-year lows.

But imports fell in the first quarter, adding to worries about weak demand.

All eyes have been on Beijing's infrastructure spending which expanded 4.4 percent in the first three months after plummeting to 3.8 percent growth last year amid a campaign against debt and financial risk.

The broader fixed-asset investment indicator rose 6.3 percent on-year for the first quarter, from 6.1 percent in January-February.

Output growth at factories and workshops in March shot up 8.5 percent on-year, from 5.3 percent in the first two months, well above forecasts.

Another drag on the economy, the US-China trade war, appears to be approaching a resolution after nine rounds of high-level talks between American and mainland officials.

The two sides have exchanged tariffs on more than US$360 billion in two-way trade, hurting manufacturers in China and farmers in the US.

But no date has been set to bring together presidents Xi Jinping and Donald Trump for a deal signing. (AFP)