China’s economy grew unexpectedly quickly in January and February thanks to a surge in overseas demand for Chinese goods, according to the latest data released by the National Bureau of Statistics. However, this surge in exports may not be sustained due to the rising trade tensions with the US, The Wall Street Journal reports.
The NBS data showed a 7.2% year-on-year rise in industrial production in January and February, much higher than the forecasted growth of 6.1% predicted by a poll of economists conducted by The Wall Street Journal. Fixed-asset investment also rose by a surprisingly high 7.9% compared to last year, beating economists’ forecasts of 7%. Retail sales increased 9.7% year-on-year, a tick higher than predicted.
The main reason for the strong growth is likely to have been the unexpected 44.5% surge in exports in February, which has further widened China’s global trade surplus.