Chinese economic growth trounced expectations over the first three months of the year despite the ongoing property crisis.
Gross domestic product climbed 5.3% over the period, said China’s National Bureau of Statistics, against expectations for 4.6% growth.
The manufacturing sector drove growth, increasing by 6.7% year on year, buoyed by hi-tech and auto production.
However, housing data showed the property market, which accounts for around a fifth of the world’s second-largest economy, still faced a crisis.
Sales value of newly built residential properties contracted by 30.7%, the fastest pace in more than eight years, while property investment fell 9.5%.
“You cannot manufacture growth forever,” Moody’s Analytics’ Harry Murphy Cruise commented, referencing China’s 5% annual growth target.
“We expect property to remain a major drag on growth this year,” ING Economics analysts added.
“Policies to stabilise the market will likely still be needed in the months ahead.”