China’s Economy Expands 5 Percent Despite Economic Headwinds

(MENAFN) China successfully reached its 5% economic expansion goal for 2025, government figures confirmed Monday, as the nation's GDP surpassed a historic 140 trillion yuan milestone—approximately $20 trillion.

The National Bureau of Statistics released data showing the world's second-largest economy achieved its "about 5%" target amid significant challenges including sluggish consumer spending, persistent deflation, a three-year property market crisis, and looming threats from American tariff measures.

Historical performance shows Beijing's GDP expanded 2.2% in 2020, surged 8.4% in 2021, slowed to 3% in 2022, rebounded to 5.2% in 2023, and maintained 5% growth in 2024, based on government records.

Manufacturing Surges as Property Investment Plummets
Industrial production climbed 5.9% last year while the service sector posted 5.4% gains, according to bureau statistics. Retail sales—a critical indicator of consumer appetite and internal market strength—advanced 3.7%.

However, fixed-asset investment across infrastructure, property development, and equipment purchases contracted 3.8% compared to the previous year.

The real estate segment bore the brunt of declining investment, plunging 17.2% and prolonging a slump that has persisted for three consecutive years.

Robust international commerce helped counterbalance domestic vulnerabilities. China's trade surplus hit a record $1.19 trillion in 2025, exceeding the trillion-dollar threshold annually for the first time in history.

Fourth-Quarter Momentum Weakens
Year-over-year growth decelerated to 4.5% during the final quarter of 2025, dropping from the prior quarter's 4.8% and representing the slowest three-month period since early 2023's opening quarter.

Industrial capacity utilization declined 1.3 percentage points to 74.9% by year-end 2025. Joblessness measured 5.2%, climbing 0.1 percentage point versus 2024's conclusion.

Per capita real disposable income grew 5% throughout 2025, with city dwellers experiencing 4.3% increases while countryside residents enjoyed 6% gains.

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