China's GDP rose 1.2 percent on the quarter in the three months to March, moderating from growth of 1.6 percent in the three months to December, with year-over-year growth unchanged at 5.4 percent. Monthly activity data also published today showed stronger growth in key activity indicators but another substantial decline in house prices.

In their statement accompanying today's data, officials characterised the data as showing the economy was off to a good start" in 2025. Although officials did not explicitly refer to the recent escalation in global trade tensions and market volatility, they cautioned that the external environment is"complex and severe" and that drivers of domestic demand remain insufficient". Although they again pledged to"implement more proactive and effective macro policies", officials provided no specific guidance about whether additional changes to policy settings will be considered in the near-term.

Data published today were generally stronger than consensus forecasts. The China's RPI fell from plus 57 to plus 37 while the RPI-P fell from plus 100 to plus 72, indicating that recent Chinese data in sum are still coming in well above consensus forecasts.

Growth seen at another robust 1.5 percent on the quarter and at 5.2 percent on year for Q1 versus 1.6 percent and 5.4 percent in Q4. So, the economy was growing nicely ahead of the next round of stimulus and the Trump tariffs.

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.