BAKU, Azerbaijan, June 22. China's economy expanded by 5% in the first quarter of 2026, supported by resilient manufacturing activity and strong export performance, according to OPEC.
This was stated in OPEC's June Monthly Oil Market Report.
"China’s healthy 1Q26 economic growth, reaching 5%, stood at the upper end of the authorities’ annual growth objective of 4.5% to 5%," the report says.
According to OPEC, manufacturing activity and robust exports helped offset continued weakness in the property sector and only moderate growth in household consumption during the first three months of the year.
The report notes that input-cost pressures remained elevated amid disruptions in global energy and raw material markets.
However, China's diversified energy mix, administrative pricing mechanisms and policy measures have so far limited the impact on inflation and domestic demand, report says.
At the same time, OPEC cautioned that higher energy and raw material costs could put pressure on corporate profitability, particularly in sectors facing weak domestic demand and strong competition.
The report also highlights ongoing challenges in the real estate sector, which continues to weigh on domestic demand.
"Real estate investment fell by 13.7%, year-on-year, in the first four months, while commercial housing sales by value and floor space continued to contract," the report says.
According to OPEC, although the housing market adjustment has not triggered broader financial instability, it continues to affect private investment, consumer confidence and local government-related activity.
The organization noted that Chinese authorities remain focused on stabilizing the property sector and limiting spillover risks rather than pursuing a broad property-driven expansion.
OPEC data also suggest that higher energy and raw material costs have so far been largely absorbed by the Chinese economy without significant impact on inflation or final demand, supported by policy measures and a diversified energy structure.
From this perspective, it may be noted that the overall macroeconomic environment remains relatively stable despite external price pressures, while policy focus continues to be directed toward maintaining balance in key sectors of the economy.
The report further indicates that growth priorities remain concentrated around manufacturing, technology and other policy-supported areas, alongside ongoing efforts to stabilize the real estate sector.
China’s manufacturing sector remains one of the key pillars of the national economy, accounting for roughly a quarter of GDP and a significant share of global industrial output, according to industry data. The sector spans a broad range of industries, including electronics, machinery, automotive, chemicals and high-tech equipment, supported by extensive industrial clusters and integrated supply chains across major coastal regions.
The combination of large-scale production capacity, deep supplier networks and ongoing industrial upgrading has allowed the sector to maintain steady value-added growth, even as the economy gradually shifts toward more technology-intensive production. In this context, manufacturing continues to play a central role in supporting overall GDP expansion, acting as a stable base for both export performance and domestic industrial activity.
