China's economy grew at record rate in Q1, but crude outlook mixed

London (Quantum Commodity Inteliigence) - China's economy grew at a chunky 18.3% year on year in the first quarter of the year, the country's National Bureau of Statistics (NBS) said in a release Friday, although the figures were flattered by 2020's downturn due to initial outbreak of Covid 19.

While the figure was a record, on a quarterly basis the figures were just 0.6% up compared to the last quarter of the year, and the quarterly growth figure was marginally lower than the 19% economists were predicting.

However, the figures do show how quickly other economies could bounce back once the pandemic eases.

"We are confident that the current recovery trend will continue throughout the year," a government spokesperson told reporters at a press briefing Monday.

What the figures mean for crude import growth is mixed.

China posted a sharp rise in crude imports in the first quarter of the year, fuelled by a rise in import quotas that independent refiners rushed to snap up.

Analysts are less bullish about Q2 figures.

"The national economy made a good start… (but) we must be aware that the epidemic is still spreading globally and the international landscape is complicated with high uncertainties and instabilities," the NBS said.

Furthermore, economists say there are early signs that the world's second-largest economy could be overheating, with China's stock market hitting an all-time high in February, despite retreating since, while the construction sector is in the middle of a boom.

Such fears may lead the government to pare back infrastructure spending plans.