China’s economy unexpectedly held up in the first three months as policy makers boosted stimulus measures to sustain growth.

Gross domestic product rose 6.4 per cent in the first quarter from a year earlier, exceeding economist estimates and matching the previous three months. In March, factory output jumped 8.5 percent from a year earlier, much higher than forecast. Retail sales expanded 8.7 per cent, while investment was up 6.3 per cent in the year to date.

The unexpected resilience suggests that pro-growth policies are taking effect, with tax cuts and supportive monetary policy supporting sentiment. Fears that the recovery is temporary may continue amid weaker global demand and uncertainty about the course of trade talks with the U.S.

“The stabilization in cyclical momentum is underpinned by a steady pace of monetary expansion and more effective fiscal loosening on the way,” China International Capital Corporation economists led by Eva Yi wrote in a recent report.

Economists forecast a full-year growth rate of 6.2 per cent in 2019, down from 6.6 per cent last year.

With assistance from Kevin Hamlin and Xiaoqing Pi