China reports 5.4% GDP growth in Q1 2025

China's economy grew by 5.4% year-on-year in the first quarter of 2025, exceeding analysts' expectations of 5.1%. This growth aligns with the previous quarter's performance and is driven by a 5.9% increase in retail sales and a significant 7.7% rise in industrial output. Despite these positive indicators, challenges remain, particularly due to ongoing trade tensions with the United States and a sluggish domestic demand exacerbated by a downturn in the property sector. Some analysts express concerns over the sustainability of this growth, highlighting that the government may need to implement more stimulus measures to support economic activity. The quarter also saw a 1.2% increase in GDP compared to the previous quarter, slightly below expectations. China's leadership aims for an annual growth target of around 5%, which many see as ambitious given the current economic climate.