1、May EconomicMonitorIssue:2023 Q2Key takeawaysChinas GDP grew 4.5%year-over-year(yoy)in 2023 Q1,up from 2.9%in Q4 2022 and higher than market expectations.Thebetter-than-expected growth was mainly supported by consumption recovery,export resilience and improving property market.With Covid-19 restrict

2、ions lifted,retail sales saw a solid recovery in Q1 2023,with service consumption enjoying a particularlystrong rebound.Consumer sentiment improved modestly and the share of households indicating more savings dropped slightlyin the latest survey(but still high).Manufacturing and infrastructure inves

3、tments were holding up relatively well,growing 7.0%and 8.8%in Q1 2023,respectively.However,momentum has weakened somewhat recently.Looking ahead,investment in high-end manufacturing and equipmentupgrading will likely continue to see robust growth.The property market is gradually recovering from last

4、 years depressed levels.The year-on-year decline of real estateinvestment narrowed from-10%in 2022 to-5.8%in Q1 2023.Liquidity pressure remains tight with bank loans down 10%inQ1.The property market is expected to continue the sequential recovery in 2H 2023 but weak land purchases and new startswill

5、 likely weigh on the pace of the recovery.Exports in Q1 2023 surprised on the upside,highlighting the resilience of Chinas exports.Despite slowing exports toadvanced economies,Chinas trade with emerging markets continue to rise.Chinas exports to ASEAN reached USD 56.4billion in March 2023,a record h

6、igh.Meanwhile,the structure of Chinas exports is also changing with rising share of advancedmanufacturing products.New energy vehicles(NEVs),solar panels,and lithium battery have become bright spots for Chinasexports.Overall,Chinas economy is recovering since the removal of pandemic-related restrict