China meets 2025 growth target as economy posts one of weakest expansions in decades

China’s economy expanded by 5 per cent in 2025, meeting Beijing’s official annual target but marking one of the country’s slowest growth rates in decades, according to data released by the National Bureau of Statistics on Monday.

Figures reported by Al Jazeera suggest that the world’s second-largest economy proved resilient in the face of trade tensions with the United States under President Donald Trump, with strong export performance helping to cushion the impact of weak domestic demand and a prolonged downturn in the property sector. Even so, growth remained well below the long-term average of roughly 8 per cent recorded between 2000 and 2025.

Economic momentum eased towards the end of the year. China’s annualised growth rate slowed to 4.5 per cent in the final quarter, down from 4.8 per cent in the third quarter and 5.2 per cent in the second.

In a statement, the statistics bureau said the economy had made “steady progress” in 2025 despite mounting pressures, adding that advances in what it described as high-quality development had been achieved. However, it warned that challenges were intensifying, citing a weakening external environment, an imbalance between supply and demand at home, and a range of unresolved structural problems.

Exports remained the main engine of growth, with their total value rising by 6.1 per cent over the year to nearly 27 trillion yuan (£3.1 trillion). China’s trade surplus hit a record high of almost $1.2 trillion, as exporters diversified into markets across Asia, Africa, Latin America and Europe to offset the impact of US tariffs.

By contrast, domestic consumption and investment continued to drag on growth. Retail sales rose by just 0.9 per cent year on year in December, down from 1.3 per cent in November and the weakest increase since China lifted its strict Covid-19 restrictions in late 2022.

Fixed-asset investment declined by 3.8 per cent over the year, with infrastructure spending falling by 2.2 per cent and investment in real estate development plunging by 17.2 per cent, underscoring the depth of the property sector’s malaise.

Commenting on the data, Lynn Song, chief economist for Greater China, said China had achieved its growth objective for 2025 but faced a more uncertain outlook ahead. He noted that economic activity slowed markedly in the second half of the year, shifting attention to how policymakers would sustain growth in 2026 as China prepares to launch its 15th five-year plan.