China’s K-shaped growth

CHINA’s economic growth reaccelerated to 5% year-on-year (y-o-y) in the first quarter of financial year 2026 (1Q26) from 4.5% in 4Q25, coming in above market expectations.

Despite the energy shock in March due to the Middle East conflict, the economy delivered a solid start to the year, supported primarily by the earlier transmission of macro policy support, which helped offset still-fragile domestic consumption.