China's Economic Growth Defies Expectations Amid Global Tensions

China's economy recorded a 5.0% growth in the first quarter compared to a year earlier, outperforming analyst expectations, official data revealed on Thursday. This growth surpasses the anticipated 4.8%, as policymakers prepare for potential economic repercussions from the ongoing Iran war.

On a quarterly basis, China's GDP grew by 1.3% in the first quarter, aligning with forecasts and slightly ahead of the 1.2% rise in the prior quarter. The country, heavily reliant on energy imports and exports, faces heightened risks following the Middle East conflict's outbreak on February 28.

This tension has exposed a crucial vulnerability within the world's second-largest economy: susceptibility to an oil shock that is already affecting trade, increasing factory expenses, and obscuring the year's economic outlook.

(With inputs from agencies.)