China's GDP rose 1.6 percent on the quarter in the three months to March, strengthening from growth of 1.0 percent in the three months to December, with year-over-year growth picking up slightly from 5.2 percent to 5.3 percent. This was stronger than the consensus forecast for quarter-over-quarter growth of 1.5 percent and year-over-year growth of 4.9 percent. Monthly data also published today showed growth in retail sales weakened in March compared with the first two months of the year.

Officials characterised GDP and the monthly data published today as showing that"the national economy continued the good momentum of rebound" and indicated that they see the current policy stance as appropriate. Officials also warned, however, that"the external environment is becoming more complex, severe and uncertain, and the foundation for stable and sound economic growth is not solid yet".

Although today's GDP data were above the consensus forecast, monthly data were generally weaker than expected. The China's RPI fell from plus 7 to minus 34 and the RPI-P fell from plus 30 to minus 27, indicating that recent Chinese data in sum are now coming in below consensus forecasts.

First-quarter GDP is expected to rise 1.5 percent versus the fourth quarter which would compare with as-expected 1.0 percent sequential growth from the third quarter. The year-over-year expectation in the fourth quarter is growth of 4.9 percent which would compare with 5.2 percent growth in the fourth quarter.

Gross Domestic Product (GDP) refers to the final products at market prices produced by all resident units in a country (or a region) during a certain period of time. GDP is the core indicator of the national accounts, and also an important indicator to measure the economic conditions and the level of development of a country or region. GDP is calculated from three approaches -- production, income and expenditure -- which reflect gross domestic product and its composition from different angles.

GDP is the all-inclusive measure of economic activity. The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.

The data are compiled by NBS and the People's Bank of China (PBoC). Estimates for non-financial corporations, financial corporations, general government, household and the rest of the world sectors are published. The production accounts, distribution and use of income account, and capital account data are compiled by NBS. NBS also develops the financial account by rearranging financial transactions data in the flow of funds accounts compiled by PBoC. There are no breakdowns of government consumption expenditure, gross fixed capital formation, change in inventories and net exports. Household consumption expenditures are broken down into urban and rural. The income components of GDP are only published in the input-output tables. NBS uses the Chinese Industrial Classification of the National Economy.