Q1 data reflects confidence and strength of Chinese economy

China's GDP has grown at a faster rate of 5.3 percent than the 4.6 percent expected by many Western observers. This growth comes as no surprise following the resurgence of discretionary spending over the recent festival holidays. This was an early indication of economic strength. This discretionary spending is a useful measure of the health and expectations of the Chinese economy.

Increased consumer spending during the Qingming Festival was a litmus test for sustained confidence in Chinese economic growth. The festival continued the momentum of discretionary spending seen in the Chinese New Year Festival. This suggests that the Spring Festival consumer spending increase was early evidence of a return in confidence in economic growth, so the high growth rate in Q1 is not a surprise.

The increase in Q1 GDP is evidence of sustainable growth in the economy and economic activity. It reflects increased productivity created in the digital and green economies. This is where the future of economic growth is found.