China's economy expands amid global risks

China’s economy expanded more than expected in the first three months of the year, with official data released on Thursday showing resilience despite a Middle East crisis that threatens to weigh on global growth.

The figures came even as global energy prices surged following the US-Israel war on Iran, which has disrupted shipping through the strategically vital Strait of Hormuz, through which about one-fifth of the world’s oil and natural gas passes, News.Az reports, citing AFP.

Analysts say China’s diversified energy supply has helped shield it from immediate shocks. However, they warn that a potential global downturn triggered by the conflict could weaken demand for Chinese exports, which have been a key driver of the country’s economic performance.

Gross domestic product in the world’s second-largest economy grew 5.0 percent year-on-year in January–March, according to data from the National Bureau of Statistics of China.

The result slightly exceeded an AFP forecast of 4.8 percent based on a survey of economists.

In a statement accompanying the release, the National Bureau of Statistics said China’s economy “achieved a strong start to the year, further demonstrating its resilience and vitality.”

The reading came just days after the International Monetary Fund cut its global growth outlook for 2026, warning that the world economy could be “thrown off course” by the Middle East war.

The IMF also lowered its growth forecast for China to 4.4 percent, down from a previous estimate of 4.5 percent.

It noted that the global economy is facing a “test of resilience,” with underlying unevenness, adding that China’s “domestic activity—especially in the housing sector—lags behind exports.”

Beijing has set a 2026 growth target of 4.5–5.0 percent, its lowest level in decades.

News.Az 

By Nijat Babayev