The Chinese economy picked up steam in the first quarter.
Gross domestic product grew 6.9% from a year earlier, the country’s National Bureau of Statistics said Monday. That’s slightly higher than the 6.8% figure recorded in the fourth quarter of last year — and above what some economists had been predicting.
The Chinese government said last month that it’s targeting growth of “around 6.5% or higher if possible” in 2017. The economy grew 6.7% last year.
China’s ruling Communist party has been prioritizing economic stability ahead of a key leadership reshuffle later this year when President Xi Jinping’s second term in power will start.
But many economists fear that China’s efforts to boost growth today will come at a price during Xi’s next term. Bank lending has continued to soar, with debt growing at more than twice the rate of the underlying economy.