China’s economy gained momentum in Q1, with GDP rising 5% year-on-year, up from 4.5% in Q4 and above the 4.8% consensus, driven mainly by strong export growth offsetting weak domestic demand, according to the National Statistics Bureau. However, the Iran war-driven energy shock clouds the growth outlook and may weaken global demand. Beijing has set a 2026 growth target of 4.5%–5%, the lowest since the early 1990s, reflecting softer domestic demand and ongoing US trade tensions. The statistics bu

China’s economy gained momentum in Q1, with GDP rising 5% year-on-year, up from 4.5% in Q4 and above the 4.8% consensus, driven mainly by strong export growth offsetting weak domestic demand, according to the National Statistics Bureau. However, the Iran war-driven energy shock clouds the growth outlook and may weaken global demand. Beijing has set a 2026 growth target of 4.5%–5%, the lowest since the early 1990s, reflecting softer domestic demand and ongoing US trade tensions. The statistics bureau warned the external environment is becoming more complex and volatile, citing an “acute” imbalance between strong supply and weak demand.