In the first quarter of 2023, China's economy expanded by 4.5 per cent year over year, indicating that the country's rebound from Beijing's rigorous "zero-COVID" measures has begun.

The growth rate exceeds market estimates even though it is slightly below Beijing's aim of 5% growth for 2023, which was announced at the March National People's Congress meeting.

Additional official economic data provided on Tuesday confirmed indications of an upswing in the economy.

According to data from the National Bureau of Statistics, retail sales increased by 10.6% yearly, while value-added service output increased by 5.4%.

Although the Purchasing Manager's Index, a gauge of China's manufacturing trends, fell marginally to 51.9 from 52.6 in February, value-added industrial production increased by 3% yearly. An expansion is defined as a reading of more than 50.

The official estimates may paint a little more optimistic picture than the actual situation because the baseline is March 2022, when economic activity throughout China was reduced owing to lockdowns, according to Alicia Garcia Herrero, the head economist for the Asia Pacific at Natixis. Nevertheless, she noted that the "data was quite good."

As a result of stringent pandemic precautions, such as border closures, mass testing, and months-long lockdowns in significant areas like Shanghai, the financial centre of China, the economy only grew by 3% last year, the second-lowest rate since 1976.

In the latter half of 2022, Beijing's "zero-COVID" goal and its impact on the economy provoked a wave of unusual mass protests across China's major cities.

After nearly three years of stringent restrictions, Beijing abruptly abandoned its strict pandemic approach in December, and it is thought that the demonstrations had a significant role in that decision.