China's economy demonstrated resilience in the first quarter of 2023, growing by 5% compared to the same period last year, according to government data released on Thursday. This growth outperformed economists' expectations and marked an increase from the 4.5% growth recorded in the previous quarter. The data covers a timeframe during which the Iran war began, which has contributed to rising energy prices and inflation, affecting global economic conditions. Despite these challenges, economists believe China can manage the short-term impacts of the conflict. However, the International Monetary Fund has revised its economic growth forecast for China to 4.4% for 2026, reflecting concerns about long-term effects on global demand for Chinese exports. Chinese authorities have set a growth target of 4.5% to 5% for 2023, the slowest target since 1991.