China’s economy grows 5% in first quarter, surprising economists to the upside

China’s economy accelerated in the first quarter of this year, expanding 5% from a year earlier as it largely shrugged off impacts from the Iran war so far, according to data released Thursday.

The January-March data released by the government, covering a period during which the Iran war began, was better than what economists expected and was up from the 4.5% growth seen in the October-December quarter.

On a quarter-on-quarter basis, China’s economy grew 1.3% in the first three months from the final quarter of last year, the fastest pace in a year.

Economists expect China, the world’s second largest economy, to be able to weather short-term impacts from the Iran war, now in its seventh week. The war is pushing energy prices higher, worsening inflation and impacting global economic growth. But longer term, areas including global demand for Chinese exports could take a hit.

The International Monetary Fund this week trimmed its........

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