China’s GDP grows by 5.3% on an annual basis in the 1st quarter, surpassing the forecasted 5.0%.

On a quarterly basis, China reported that its GDP grew by 1.6% in the first three months of this year, accelerating from the quarterly gain of 1.0% observed in the last three months of 2023.

China’s Gross Domestic Product (GDP) grew by 5.3% in the first quarter of the year compared to the same period last year, surpassing market expectations, official data showed on Tuesday.

Industrial production was one of the main contributors to the above-expected result by economists, as it boosted exports. The United States and Europe have been urging Chinese authorities that the export drive is flooding global markets with cheap goods, creating asymmetries in market competition.

The result, which exceeded the annual growth rate of 5.2% recorded in the last quarter of last year, also comfortably surpassed the value of 5.0% expected by economists.

The numbers suggest that the world’s second-largest economy started the year on a solid footing. On a quarterly basis, China reported that its GDP grew by 1.6% in the first three months of this year, accelerating from the quarterly gain of 1.0% observed in the last three months of 2023, according to the National Bureau of Statistics.

China’s GDP growth holds significant importance for Latin American economies and commodity prices due to its role as a major trading partner and consumer of commodities from the region. Latin America heavily relies on exporting commodities such as agricultural products, minerals, and energy resources to China. Therefore, fluctuations in China’s GDP growth directly impact the demand and prices of these commodities.

When China experiences robust economic growth, its demand for commodities tends to increase, leading to higher prices and increased export revenues for commodity-exporting countries in Latin America. Conversely, a slowdown or contraction in China’s economy can result in reduced demand for commodities, leading to lower prices and decreased export revenues, which can negatively impact the economies of Latin American countries reliant on commodity exports.