China's economy grows 5% in first quarter, driven by domestic demand
via The Reporter Ethiopia2 min read
China's economy expanded by 5 percent in the first quarter of 2026, reaching 33.42 trillion yuan $4.9 trillion. This growth, which was 0.5 percentage points higher than the previous quarter, was largely fueled by domestic demand, contributing over four-fifths of the GDP increase. Investment returned to positive growth, and inflation showed an upward trend, indicating a steady economic expansion. Retail sales, a key indicator of consumption, rose by 2.4 percent year-on-year. Fixed-asset investment increased by 1.7 percent, reversing a previous decline, with strengthened infrastructure spending and accelerated manufacturing investment. Technological and industrial innovation also played a significant role, with high-tech manufacturing contributing 32.6 percent to overall industrial output growth. The GDP deflator, a measure of price levels, improved to -0.1 percent, the highest in three years, suggesting a transition to reflation. This strong economic performance has positively impacted China's stock market, with the ChiNext Index reaching an 11-year high. China also climbed to fourth place globally in Kearney's 2026 FDI Confidence Index, with its leadership in artificial intelligence and vast domestic market cited as key attractions for foreign direct investment.
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
Countries participating in the Belt and Road Initiative have shown significant interest in a new meteorology project launched by China. This initiative utilizes artificial intelligence to enhance weather forecasting, which is particularly relevant given the increasing frequency of extreme weather events globally. The project, funded by China's Ministry of Science and Technology and led by the Centre for Earth System Modelling and Prediction of the China Meteorological Administration, aims to strengthen early warning systems and improve responses to extreme weather. It builds upon China's MAZU early warning system, an open-source meteorological service platform already in use in countries like Ethiopia and Pakistan for real-time weather monitoring and disaster alerts. Kouam Magloire, head of the data processing office of meteorological services in Cameroon, highlighted the project's potential to bolster his country's early warning capabilities. Leta Bekele Gudina, an expert from the Ethiopian Meteorological Institute, noted China's leadership in meteorological forecasting and AI development, expressing Ethiopia's hope to access advanced technologies, train local professionals, and address gaps in nowcasting and early warning services. The China Meteorological Administration indicated that many Belt and Road countries face rising risks from extreme weather, with meteorological disasters causing an average of $214.7 billion in direct economic losses annually between 1980 and 202
Mekele 70 Enderta and Wolwalo Adigrat University have advanced to the semi-finals of the 2025/26 Ethiopian Cup, marking their first-ever appearance in the last four of the competition. Mekele 70 Enderta defeated second-division side Boditi Ketema 3–2. Muluken Tesfaye scored first for Boditi, but Fitsum Alemu equalized for Mekele. Goals from Prince Ofori and Bona Ali gave Mekele a 3–1 lead, and despite a late goal from Tewodros Belete for Boditi, Mekele held on. Wolwalo Adigrat University secured their spot by beating record champions Mechal 5–4 in a penalty shootout after a goalless 90 minutes. Wolwalo's Ugandan goalkeeper Joel Mutakubwa was instrumental, saving three Mechal spot kicks. Both Mekele 70 Enderta and Wolwalo Adigrat University are currently battling relegation in the 2025/26 CBE Ethiopian Premier League, and their success in the Ethiopian Cup could be crucial for their league survival efforts.
Must ReadThe Trump administration is reportedly looking to restore US diplomatic relations with Eritrea and lift sanctions, according to Massad Boulos, US senior advisor for Arab and African Affairs. This move is part of Washington's efforts to counter Iranian influence in the Red Sea maritime shipping corridor, especially as Yemen's Iran-allied Houthis threaten to close the Bab Al-Mandeb strait. Egyptian President Abdel Fattah El Sisi is facilitating talks between Eritrea's government and Washington. The US has maintained targeted financial sanctions on Eritrea's ruling PFDJ and other entities since 2021, largely due to Asmara's involvement in the Tigray war. While the UN and EU lifted their embargoes on Eritrea in 2018, a subsequent normalization of relations with Ethiopia did not last. In October 2024, Eritrea, Egypt, and Somalia formed an alliance to bolster regional security and check Ethiopian influence, amidst a dispute between Ethiopia and Somalia over maritime access.
Must ReadThe European Union's Political and Security Committee has approved an additional 75 million euros in support for the African Union's peacekeeping mission in Somalia, the Support and Stabilization Mission in Somalia AUSSOM, through the European Peace Facility EPF. This new funding brings the EU's total support to AU-led missions in Somalia to nearly 2.8 billion euros since 2007. The funds will primarily cover troop allowances for personnel deployed in Somalia, as well as non-lethal equipment and related services. AUSSOM, which replaced ATMIS in January 2025 and is extended through 2026, continues to face a significant funding gap, leading to arrears in payments to Troop Contributing Countries TCCs such as Uganda, Kenya, Ethiopia, and Djibouti. TCCs are expected to deploy up to 11,800 uniformed personnel, including 680 police personnel, to AUSSOM until December 2026. The estimated budget for the year leading up to June 2026 is approximately USD 190 million. Despite donor funding from various sources, the mission's long-term financial situation remains precarious due to its reliance on fragmented, non-sustainable funding, compounded by a resurgence of Al-Shabaab militants. The EU remains the largest direct contributor to successive AU missions in Somalia.