China's economy grew by 5% in the first quarter, exceeding expectations, but the war in Iran could affect long-term demand

China's economy recorded a 5% expansion in the first quarter of this year, according to government data, exceeding economists' expectations and improving on the 4.5% result from the previous quarter. Although the war in Iran, now in its seventh week, has led to rising energy prices and higher inflation, economists estimate that China will be able to cope with the short-term impact. However, in the long term, global demand for Chinese exports could suffer. The International Monetary Fund has revised China's economic growth forecast to 4.4% for 2026. Although China managed to achieve a growth of about 5% last year, a declining real estate sector has affected consumer confidence. The war in Iran could reduce global growth, affecting the ability of other economies to absorb Chinese exports. Although it is estimated that China can achieve the growth target of 4.5% - 5% through policy incentives, there are concerns regarding dependence on exports and deflationary pressure.