China Q1 GDP rises faster than expected after COVID curbs end
Factory output up 3.9 yy, retail sales up 10.6
Economy still faces challenges from debt risks, slow global growth
Policymakers pledge to step up support for economy

BEIJING, April 18 Reuters China39;s economy grew at a fasterthanexpected pace in the first quarter, as the end of strict COVID curbs lifted businesses and consumers out of crippling pandemic disruptions, although headwinds from a global slowdown point to a bumpy ride ahead.

More than a yearlong sweeping streak of global monetary policy tightening to rein in redhot inflation has dented world economic growth, leaving many countries including China reliant on domestic demand to spur momentum and raising the challenge for policymakers looking for postCOVID stability.

Gross domestic product grew 4.5 yearonyear in the first three months of the year, data from the National Bureau of Statistics NBS showed on Tuesday, faster than the 2.9 in the previous quarter. It beat analyst forecasts for a 4.0 expansion and marked the strongest growth in a year.

Investors have been closely watching first quarter data to assess the strength of the recovery after Beijing abruptly lifted COVID curbs in December and eased a threeyear crackdown on tech firms and property. GDP growth last year slumped to one of its worst in nearly half a century due to COVID restrictions.

Economic recovery is well on track. The bright spot is consumption, which is strengthening as…