(Yicai) April 16 -- China’s gross domestic product expanded by a better-than-expected 5 percent in the first three months from a year earlier, although momentum slowed in March across production, consumption and investment, according to the latest data.

Preliminary calculations show that the country’s GDP reached CNY33.4 trillion (USD4.9 trillion) in the three months ended March 31 as measured in constant prices, the National Bureau of Statistics said today. Growth accelerated by 0.5 percentage point compared with the fourth quarter of last year.

This comes in higher than a previous Yicai Research Institute survey of 16 chief economists, which had forecast 4.8 percent growth in the first quarter.

The added value of industrial enterprises above a designated size, which refers to those with an annual revenue of at least CNY20 million (USD2.9 million), jumped 6.1 percent in the first three months from a year ago, up 1.1 percentage points from the previous quarter, the NBS said. The total retail sales of consumer goods climbed 2.4 percent, a gain of 0.7 percentage point, while fixed asset investment advanced 1.7 percent, reversing a 3.8 percent decline over the full year of 2025.

Overall, major macro indicators improved in the first three months with new growth drivers expanding quickly and the economy got off to a good start, Mao Shengyong, deputy director of the NBS, said at a press conference today.

However, it should be noted that the overseas situation has become more complex and volatile, domestic demand remains relatively weak and the foundation for economic growth still needs to be strengthened, he added.

In March, the added value of industrial enterprises above a designated size jumped 5.7 percent from a year ago, which was a dip of 0.6 percentage point from the January to February period, while the total retail sales of consumer goods climbed 1.7 percent, a drop of 1.1 percentage points, according to NBS data. In the first quarter, fixed asset investment growth eased 0.1 percentage point from the growth logged in the previous two months.

In the first quarter, the economy achieved a good start thanks to the policy stimulus at the beginning of the year, the launch of major projects and the nine-day Lunar New Year holiday, said Luo Zhiheng, chief economist of Yuekai Securities. But these effects are expected to fade in the second quarter, which could lead to a moderate slowdown.

A temporary slowdown in growth in the second quarter does not signal a broader downturn, but rather reflects seasonal adjustments and external uncertainties, Luo added.

China’s economy is in a critical stage of consolidating its recovery momentum and coping with structural challenges, said Cai Wei, director of the KPMG China Economic Research Institute. Looking ahead, with various policies coming into force and the strengthening of internal driving forces, the economy is expected to maintain stable growth.

Editors: Dou Shicong, Kim Taylor