GDP growth records fastest upturn since Q1 2023 in the first quarter

Q1 growth records the best result in 2 years: A preliminary report shows that GDP growth increased to 4.2% year on year in the first quarter from 2.9% in the fourth quarter of last year. Q1’s reading marked the best result since Q1 2023.

Drivers: The upturn reflected broad-based improvements. Private consumption grew to 4.7% year-on-year in Q1 compared to a 4.2% expansion in Q4. Government consumption hit an over two-year high of 7.3% in the first quarter, up from the fourth quarter's 5.8%. Meanwhile, fixed investment growth accelerated to 9.6% in Q1 from 6.4% in the previous quarter. Exports of goods and services bounced back, growing 5.2% year on year in the first quarter (Q4 2023: -7.9% yoy), marking the best reading since Q4 2022. Additionally, imports of goods and services also bounced back, growing by 8.0% in Q1 (Q4 2023: -2.6% yoy). Economic activity rebounded on a seasonally adjusted quarter-on-quarter basis, expanding 1.4% in Q1, contrasting the previous period’s 1.0% decrease.

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