Economic Performance - In Q1 2025, China's GDP (constant price) grew by 5.4% year-on-year, surpassing the expected growth target of around 5.0%[5] - The first, second, and third industries saw value-added growth of 3.5%, 5.9%, and 5.3% respectively[5] - Social retail sales, fixed asset investment, and exports (in RMB) increased by 4.6%, 4.2%, and 6.9% year-on-year[5] Inflation and Price Indices - In Q1 2025, the GDP deflator, CPI, and PPI decreased by 0.8%, 0.1%, and 2.3% respectively, indicating persistent downward pressure on prices[7] - CPI fluctuations were influenced by a 1.5% decline in food prices, which contributed to a 0.27 percentage point drop in CPI[8] Employment and Structural Issues - The urban unemployment rate averaged 5.3% in Q1 2025, reflecting a 0.3 percentage point increase from the previous quarter[16] - The youth unemployment rate for ages 16-24 was notably high at 16.5%, indicating significant pressure on this demographic[16] Industrial and Service Sector Growth - The service sector production index grew by 5.8% year-on-year, with significant contributions from information technology services, which rose by 10.3%[17] - Industrial production increased by 6.5% year-on-year, driven by strong retail and export performance[19] Fixed Asset Investment - Fixed asset investment (excluding rural households) rose by 4.2% year-on-year, with state-owned enterprises increasing investment by 6.5%[41] - Real estate development investment fell by 9.9%, indicating ongoing challenges in the housing market[42] Trade and External Factors - In Q1 2025, exports grew by 5.8% year-on-year, despite a backdrop of escalating trade tensions with the U.S.[53] - The U.S. has significantly increased tariffs on Chinese goods, with rates reaching as high as 145% on imports from China[62] Financing and Monetary Policy - Social financing increased by 15.18 trillion RMB in Q1 2025, supported by government bond issuance and bank credit expansion[64] - The M1 and M2 growth rates were 12.6% and 7.0% respectively, indicating a recovery in economic activity[66]