China’s economy meets annual growth target in 2025

(MENAFN) China’s economy expanded by 5% in 2025, achieving the government’s annual growth target, according to official data released Monday.

Figures from the National Bureau of Statistics indicate that the country’s gross domestic product surpassed 140 trillion yuan (around $20 trillion).

Despite challenges from weak domestic demand, deflationary pressures, a prolonged slump in the real estate sector, and uncertainties related to US tariff policies, China’s growth matched the government’s target of roughly 5%. Official records show the economy grew 2.2% in 2020, 8.4% in 2021, 3% in 2022, 5.2% in 2023, and 5% in 2024.

Data show industrial output rose 5.9% in 2025, with the services sector growing 5.4%. Retail sales, a key measure of consumption and domestic demand, increased by 3.7%.

By contrast, fixed-asset investment—which covers infrastructure, real estate, machinery, and equipment—fell 3.8% year-on-year. The decline was largely driven by the property market, where investment dropped 17.2%, extending a three-year downturn.

China’s strong external trade performance helped offset domestic weaknesses. The nation’s trade surplus reached $1.19 trillion in 2025, marking the first time the surplus exceeded $1 trillion in a single year.

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