• China's economy expanded 5% in 2025, meeting its official growth target.
• In Q4 2025, GDP grew 4.5%, slightly above market expectations.
• The growth in 2025 marks one of the slowest rates in decades due to low consumer spending.
• China's trade surplus reached a record high, aided by diversification away from US markets.
• Investment in sectors like property showed significant declines, raising economic concerns.

China's economy posted a growth of 5% in 2025, officially meeting the government’s target, but the rate represents one of the slowest performance levels in decades. In the fourth quarter alone, the economy grew 4.5% year-on-year, slightly above the anticipated 4.4%, yet it signals a significant decline due to ongoing challenges in consumer confidence and investment, especially in the property sector, according to Channel News Asia and Reuters.

In the last quarter of 2025, GDP growth was the slowest rate observed in three years, as domestic consumption lagged behind, affecting overall economic momentum. Analysts are concerned about weakened demand at home amid a prolonged crisis in the property market, which has further complicated the economic outlook. The trade surplus did reach a record high due to successful diversification efforts by exporters, moving away from reliance on US markets, as reported by Al Jazeera and Channel News Asia.

The quarterly growth figure for October-December topped the forecast of a 1.0% rise, achieving a 1.2% increase instead. Despite this positivity in quarterly performance, analysts highlight the unsustainable reliance on manufacturing and exports while domestic factors such as weak household spending and high precautionary savings are of concern. The National Bureau of Statistics has noted that, while the performance appears strong, the economic recovery remains uneven, according to Reuters.