China’s Q1 GDP grew better-than-expected at 6.4%

China’s economic growth came in better-than-expected for the first quarter of this year, helped by support from government stimulus measures.

China’s Gross Domestic Product for the first quarter rose by 6.4%, better than the expected 6.3% growth predicted by analysts in a Reuters poll.

The country’s economic growth for the fourth quarter had risen by 6.4%, matching levels last seen in early 2009.

To combat its economic slowdown, Beijing has been stepping up support for its economy in recent months, for example, through the announcement of massive tax cuts to support struggling firms.

Among other economic data released today, retails sales figures and industrial output performance for the month of March were also better-than-expected. Retail sales posted an 8.7% increase, compared to the consensus of an 8.4% gain. Industrial output was at a robust 8.5% growth, higher than the 5.9% increase expected.

China has been posting numbers that have beat forecasts in recent weeks, indicating signs of government stimulus’ policies easing into firms. China’s Caixin/Markit services purchasing managers’ index for March quickened to a 14-month high at 54.4 points, while the manufacturing services PMI was at an eight-month high.

Last month, China’s exports jumped 14.2%, better than estimates for a 6.5% increase.

With the bullish numbers, the Chinese yuan, Australian dollar and 10-year bond yields advanced higher. The Australian dollar rose by 0.23% to US$0.7192.

‘There is greater hope that China’s economic slowdown, which had rattled market participants in the first quarter, has bottomed-out,’ commented Kyle Rodda, market analyst at IG.

‘Core to further upside for risk assets, improvements in China’s embattled economy is a necessary precondition for optimism towards the macroeconomy and for global stocks to maintain their trend higher,’ Mr Rodda said.