China will report first-quarter growth in gross domestic product and other keenly watched economic data on Friday morning. Here are five points to watch.
1) Headline GDP growth. China’s economy grew 6.8 per cent in the fourth quarter last year and 6.9 per cent for the full year. Beijing has set a target of 6.5 to 7.0 per cent for 2016, the first time it has targeted a broad range rather than a single figure. If growth falls near the low end of that range — let alone below it — the government will face pressure to increase monetary and fiscal stimulus.
2) Services. China’s traditional growth drivers of manufacturing and construction have nosedived amid a real estate slump, falling commodity prices and overcapacity. Services helped counteract the slowdown in the industrial sector last year, but there are doubts about whether rapid services growth can continue.