China's economy outpaces forecasts with strong defence growth
The Chinese economy exceeded analysts' expectations, recording growth in production and retail sales. Data from the National Bureau of Statistics indicate a dynamic development of the defence sector, making it the leader in industrial growth, reports stats.gov.chn. Defence spending is set to reach 245 billion dollars (350 billion Canadian dollars).
As reported by Business Insider, citing the latest data, retail sales increased by 4 percent in the first two months of the year, surpassing expectations of 3.8 percent.
The Chinese economy in good condition
The report describes that the growth in retail sales was driven, among other things, by spending during the Lunar New Year holidays. During this time, Chinese cinemas recorded record revenues, and sales of household appliances and audiovisual equipment increased by 10.9 percent.
Industrial production also rose by 5.9 percent, exceeding economists' forecasts. Business Insider reports that the largest growth in the industry, at 20.8 percent year-over-year, was recorded in the sectors of railway, shipbuilding, aerospace, and other transportation equipment production.
"Defence is in full swing" - asserts the industry service.
Here are Beijing's goals
The Chinese economy officially grew by 5 percent in 2024, reaching the level set at last year's NPC session. This followed the implementation of extensive stimulus measures aimed at addressing declining domestic consumption and significant concern in the real estate market.
Chinese Premier Li Qiang confirmed at the beginning of March that the economic growth target for 2025 is around 5 percent GDP, despite growing trade tensions.
The PRC defence budget will increase by 7.2 percent to around 245 billion dollars, the same rate as last year.
