China reports 5% GDP growth in 2025, lowest since the 1990s

China’s Economy Grows 4.5% in Final Quarter of 2025

According to official statistics released on Monday, China’s economy expanded by 4.5% in the final quarter of 2025, meeting Beijing’s annual target despite registering one of the weakest expansions in decades.

The data showed that China’s economy grew in line with expectations, driven by surging exports that helped offset weak consumer spending and a prolonged property downturn. Exports accounted for the majority of the growth, with their total value increasing by 6.1% to 26,989 billion yuan.

China’s trade surplus reached a record high of nearly $1.2 trillion last year, as firms sought out new markets in Asia, Africa, Latin America, and Europe to mitigate the impact of US President Donald Trump’s tariffs.

However, consumption and real estate continued to weigh on growth, with retail sales growing 0.9% on a yearly basis in December, the slowest gain since Beijing lifted its COVID-19 controls in late 2022. Fixed-asset investment fell 3.8% across the year, with spending on infrastructure and real estate development declining by 2.2% and 17.2%, respectively.

The National Bureau of Statistics stated that while the economy sustained momentum, it faced multiple pressures and ongoing challenges. The bureau noted that high-quality development registered new achievements, but acknowledged the need to address external environment changes and domestic market contradictions.

China’s chief economist, Lynn Song, commented on the data, stating that the 4.5% growth rate met the annual target, but highlighted the need for solid growth in 2026 to achieve a strong start for Beijing’s five-year plan.

Source: Al Jazeera