China’s economy grew 5.2% YoY in the second quarter of 2025, slightly above expectations but down from 5.4% in Q1, according to data from the National Bureau of Statistics. While industrial production rose 6.8% and manufacturing output surged 7.4%, weak domestic demand and deflationary pressures weighed on overall momentum. Retail sales grew just 4.8% in June, missing forecasts, with declines in categories like beverages, cosmetics, and catering. Real estate investment dropped 11.2% in the first half. Analysts expect growth to slow further in H2, with Morgan Stanley projecting it could fall below 4.5% due to weaker global trade and deflation. Bloomberg forecasts full-year GDP growth at 4.6%, below the official 5% target.