China’s economy grew 5 percent in the first quarter of 2026. The National Bureau of Statistics released the data on Thursday. This growth rate reached the high end of the government’s 4.5 to 5 percent annual target.
Fixed-asset investment rose 1.7 percent year-on-year, reversing declines from previous quarters. Infrastructure investment jumped 8.9 percent. Manufacturing investment increased 4.1 percent. Service retail sales climbed 5.5 percent. Travel and cultural-tourism services led the growth in this sector.
Industrial profits showed strong recovery. Total profits of industrial enterprises above designated size grew 15.2 percent in the first two months. Equipment manufacturing and high-tech manufacturing drove these gains.
Foreign trade delivered a record performance. Total goods imports and exports surpassed 11 trillion yuan for the first time. This represents a 15 percent year-on-year increase. Goods exports alone rose 11.9 percent. Consequently, this marks the highest quarterly growth rate in nearly five years.
The manufacturing purchasing managers’ index returned to 50.4 in March. This reading moved back above the 50-point expansion threshold. Similarly, the services sector also returned to growth territory during the same month.
External uncertainties remain high due to global tensions. However, China’s economy has shown clear resilience. The government continues prioritizing high-quality development. Analysts expect the momentum to continue through the second quarter. Policymakers will likely maintain supportive measures to sustain this recovery. Thus, the Chinese economy appears on track to meet its full-year targets.
