China’s economy posted a stronger-than-expected growth in the first quarter as strong exports on the back of weaker currency helped to counteract the downturn in the property market.

Gross domestic product grew 5.3 percent on a yearly basis in the first quarter, the National Bureau of Statistics reported Tuesday. The growth rate exceeded both expectations of 5.0 percent and the previous quarter’s 5.2 percent growth.

Quarter-on-quarter, GDP advanced 1.6 percent after rising a revised 1.2 percent in the prior period.

NBS spokesperson Sheng Laiyun said the Chinese economy got off to a good start. However, the official cautioned that the foundation for economic stability is not yet solid.

Beijing aims to achieve a growth rate of about 5 percent in the whole year of 2024.

In March, industrial production as well as retail sales growth weakened more than expected. Industrial output climbed 4.5 percent, while economists’ expected the pace to slow to 5.4 percent from 7.0 percent.

Likewise, retail sales growth softened to 3.1 percent from 5.5 percent in February. Sales were expected to climb 4.5 percent.

During January to March, fixed asset investment expanded 4.5 percent from the same period last year. This was above economists’ forecast of 4.3 percent. At the same time, property investment shrunk 9.5 percent.

The real estate market is still in a state of adjustment, with policies aimed at supporting the sector’s development continuing to take effect, the NBS spokesperson said.

At the same time, the jobless rate fell to 5.2 percent from 5.3 percent in February.

Capital Economics’ Zichun Huang said the recovery clearly remains fragile. Although the short-term fiscal stimulus will continue to support the economy, this is unlikely to prevent a renewed slowdown, the economist added.

Despite the ongoing declines in home sales, the correction in property construction has barely begun, the economist said. The firm expects a sharp downward adjustment in the coming years, weighing on economic growth over the medium-term.

The Asian Development Bank last week said China’s economy will expand only 4.8 percent and will ease further to 4.5 percent in 2025.