China’s economy grew 5.0% year-on-year in Q1 2026, driven by stronger industrial output and trade, while consumption showed steady recovery, official data showed.
China’s gross domestic product (GDP) grew 5.0% year-on-year to 33.42 trillion yuan in Q1 2026.
The value added of industrial enterprises above designated size rose 6.1%. Retail sales of consumer goods increased 2.4%, while fixed-asset investment rose 1.7%. Total imports and exports grew 15.0%.
The surveyed urban unemployment rate stood at 5.3%. The consumer price index (CPI) rose 0.9%, while the producer price index (PPI) fell 0.6%.
Industrial production remained the main driver of growth. The value added of industrial enterprises above designated size rose 6.1%, supported by stronger manufacturing activity.
In particular, the value added of equipment manufacturing and high-tech manufacturing increased 8.9% and 12.5%, respectively.
External demand strengthened, with total imports and exports growing 15.0%. Retail sales of consumer goods expanded 2.4%, reaching 12.77 trillion yuan in the January–March period. Agricultural value added rose 3.7%.
Emerging sectors also provided new momentum. China’s artificial intelligence industry continued to expand, supporting growth across a wide range of sectors. In the first quarter, value added in electronics materials manufacturing and integrated circuit manufacturing rose 32.5% and 49.4%, respectively.
At the same time, the green transition created new growth points. The share of non-fossil energy consumption increased by 0.4 percentage points. Output of lithium-ion batteries and wind turbines rose 40.8% and 30.1%, respectively.
Regarding potential spillover risks from geopolitical tensions in the Middle East, Chinese authorities said the impact on the domestic economy remains limited and manageable.
Additional reporting by Xinhua, CNS.
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