China’s economy grew at a slightly faster-than-expected pace of 6.8 percent in the first quarter, buoyed by strong consumer demand and robust property investment.

Resilience in the world’s second-largest economy will likely keep a synchronized global recovery on track for a while longer, even as China faces rising tensions with the United States that could impact billions of dollars in trade.

Consumption, which accounted for almost 80 percent of economic growth in the first quarter, played a significant role in supporting the economy even as risks grew for Chinese exporters.

March retail sales rose 10.1 percent from a year earlier, slightly more than expected and the strongest pace in four months, with consumers buying more of almost everything from cosmetics to furniture and home appliances.

“The retail sales data tells you a lot about consumption. It is not seasonal - if you look at growth in cosmetics, spending on clothing, spending on automobiles, there has been a persistent trend for a few months,” said Iris Pang, Greater China economist at ING in Hong Kong, China.

“Consumption is really strong, there is strong wage growth in urban areas. We underestimated the power of consumption in China.”

(Source:uk.reuters.com)