China Economic Outlook Quarterly
Growth of the Chinese economy remained solid in 1Q18, at 6.8% and in tandem with the pace of expansion of the previous two quarters. Exports grew strongly but the main contributor was domestic consumption, which accounted for more than three-quarter of total growth. In particular, IoT related real economic activities are seen to have increasing impact both in terms of value added production as well as final consumption, including Internet and IT-related services consumption. Despite robust growth in 1Q, we are keeping our 2018 full year real GDP forecast unchanged at 6.5%, given some tentative signs of easing growth and the expected drag on growth from on-going structural reforms.
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