Hong Kong —
China said its economy expanded by 5.0% in the first three months of this year, faster than expected, as the Iran war upended global trade, but warned that the country faces a “volatile” external environment.
The world’s second-largest economy became the first major country to report first-quarter gross domestic product (GDP) growth after the United States and Israel launched a war against Iran in late February. The United States is scheduled to report its numbers at the end of April.
The 5% increase reported by the National Bureau of Statistics (NBS) accelerated from the 4.5% increase reported in the final quarter of last year.
Despite a boost in growth fueled by strong exports in the first two months of 2026, China’s economy faces an ominous reality as conflict in the Middle East and ensuing energy chaos rattles global demand.
The NBS praised China’s economy for showing a “solid start” this year, showing strong growth in key macroeconomic indicators, but warned of domestic and international headwinds ahead.
“While the external situation has become more complex and volatile, domestic structural imbalances characterized by strong supply and weak demand remain evident,” the authorities said in a statement.
The Iran war has plunged the world into an unprecedented energy crisis, and China’s growth statistics offer a glimpse of how the turmoil is spilling over into the global economy.
The International Monetary Fund gave a pessimistic outlook for the global economy in a report on Wednesday, warning of oil shortages this year.
This is a developing story and will be updated.
