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China's economy surged 5.4% in Q1 2025, exceeding expectations despite US tariff threats and a lowered annual growth forecast by investment banks. Retail sales and industrial output also outperformed predictions. While fixed asset investment showed growth, real estate investment declined. Unemployment fell to 5.2% in March. Despite a positive start, officials acknowledge challenges from the external environment and insufficient domestic demand, urging proactive economic policies.

Prepared by Christopher Adams and reviewed by editorial team.