Authors: Chan Kung and He Jun
On April 16, China’s National Bureau of Statistics has released the economic data for the first quarter of 2021. Preliminary estimates show that China’s GDP in the first quarter was RMB 24.931 trillion, an increase of 18.3% year-on-year and 0.6% quarter-on-quarter at comparable prices. The first-quarter GDP was also 10.3% higher than the GDP in the first quarter of 2019, with a two-year average growth rate of 5.0%.
It should be pointed out that the 18.3% year-on-year GDP growth in the first quarter was an unusual growth under the low base effect. While the GDP growth in the first quarter was impressive, it was still slightly below market expectations of 20% growth. In particular, the economy grew by 0.6% quarter-on-quarter in the first quarter, 2.6 percentage points lower than the quarter-on-quarter growth rate in the fourth quarter of 2020, indicating a slowdown in the pace of economic recovery….