China's Economic Growth Beats Expectations Despite Global Tensions

China's economy recorded a 5% growth in the first quarter compared to a year earlier, as official data on Thursday exceeded what analysts had predicted. Policymakers are gearing up for possible repercussions from the ongoing Iran conflict, underscoring a period of uncertainty.

Economists surveyed by Reuters forecasted a 4.8% year-on-year expansion. Yet, the reality surpassed expectations, revealing a quarterly GDP growth of 1.3% compared to a 1.2% increase in the previous quarter. This performance has been positively received by the financial markets.

Commenting on the data, experts noted that China's strong showing primarily stemmed from robust exports and industrial production during January and February. However, challenges persist, such as potential disturbances from international conflicts and a weaker global demand, which could slow down growth as infrastructure investment stabilizes.

(With inputs from agencies.)