CHINA GDP DISAPPOINTS, BUT SUPPORTIVE POLICIES SHOULD SUSTAIN GROWTH: BBVA

BEIJING — First quarter GDP growth in China came in at a weaker-than-expected 7.7% y/y, down from 7.9% y/y in Q4 2012, while a set of monthly activity indicators for March were also below expectations. These included industrial production (8.9% y/y vs. consensus: 10.1%) and fixed asset investment (20.9% y/y, ytd vs. consensus: 21.3%), while retail sales growth was in line with expectations (12.6% y/y vs. consensus: 12.6%) and credit growth, released last week, exceeded expectations.