China GDP growth slows to 6.7% in first quarter, in line with views

China’s economy grew 6.7% on the year in the first quarter compared with 6.8% in the fourth quarter of last year, according to official data.

Although this marked the slowest quarterly growth in seven years, it was in line with both economists’ expectations and the country’s own targets. The government’s growth range is 6.5% to 7%.

For 2015 as a whole, growth came in at 6.9%.

Meanwhile, figures from the National Bureau of Statistics showed industrial output in the world’s second-largest economy rose 6.8% in March from the year before and compared with 5.4% growth in January to February. This beat economists' expectations of a 5.9% increase.

On the month, industrial production was up 0.6% from February compared with 0.4% growth the month before.

Retail sales increased 10.5% in March from a year earlier compared with 10.2% growth in January to February, just a touch above economists’ expectations of 10.4%.

On the month, retail sales were up 0.9%.

Naeem Aslam, chief market analyst at AvaTrade, said: “The PBOC is on the correct path and they have the right tools to fine tune the economy.

“The strategies which they have employed are beginning to bear fruit. Today's GDP number certainly confirms more confidence in the Chinese recovery and if things continue at this pace, it may be just a matter of time before we see a V-shape recovery.”

However, Nomura said: “Overall, our China economics team believes that, despite signs of a significant improvement in growth momentum in March, the structural headwinds from housing oversupply, high leverage and overcapacity reductions will remain over the rest of this year.”