China's economy grew faster than expected in the first three months of the year, even as countries around the world feel the impact of the US-Israel war with Iran. Gross domestic product (GDP) rose by 5% in the period, compared to a year earlier, according to official data. Economists had expected the figure to come in at around 4.8%. That came despite the conflict in the Middle East, which started on 28 February, severely disrupting global energy supplies, with Asian countries hit particularly hard. This marks the first release of official GDP figures since Beijing cut its annual economic growth target last month to a range of 4.5%-5%, its lowest expansion goal since 1991. The rebound from a weaker expansion of 4.5% in the previous quarter was driven by manufacturing, while the world's second largest economy continues to be weighed down by falling property investment. Cars and other exports were a major bright spot in the data, said Kyle Chan, an analyst from the Brookings Institution. The Iran war's full effects are yet to be seen, Chan said, adding that next quarter's GDP figure is likely to be weaker due to trade disruptions caused by the conflict. China's latest GDP target and economic objectives were announced in March under its latest Five Year Plan. Beijing also pledged to invest heavily in innovation, high-tech industries, and efforts to boost domestic spending. The ruling Communist Party is trying to reshape the country's economy, which has been struggling with a number of issues including weak consumption, a shrinking population, and a prolonged property crisis. From abroad, China also faces an energy crunch due to the Iran war and global trade tensions, including US President Donald Trump tariffs policies. China currently faces a 10% US tariff for most of its goods. However, US Treasury Secretary Scott Bessent said on Tuesday that the levies may be restored by the beginning of July to the levels in place before the Supreme Court struck down many of the import taxes. Trump and Chinese President Xi Jinping are expected to meet in China in May. On Tuesday, China published monthly export numbers for March, which showed a sharp slowdown in growth as the conflict pushed up inflation and curbed consumer spending. China's export growth slowed sharply to 2.5% last month compared to the same time last year, according to data released on Tuesday by the General Administration of Customs, marking a six-month low. However, China's imports also surged by nearly 28% in March, customs data showed. That left China's monthly trade surplus at just over $50bn, the lowest number in more than a year. The surge in the value of imports is likely due to a rise in costs globally as a result of the Iran war, according to economics lecturer Yixiao Zhou from the Australian National University. Iran's threats against vessels that try to use the crucial Strait of Hormuz shipping route have driven up the cost of crude oil, as well as materials made from it like plastics. While China is less reliant on oil from the Gulf than other major Asian economies like Japan and South Korea, petrol is becoming more expensive and some Chinese airlines have cut flights as jet fuel prices surged. The conflict could indeed harm China's exports if consumers globally spend less due to inflation. Zhou added that, Export growth ultimately depends on your trading partners' economies... It is hard to sustain that growth at a high rate continuously.\