Country’s economy grew at its slowest pace in nearly three years during Q4 2025, expanding 4.5% YoY as domestic demand softened. Despite this slowdown, full-year growth met the official 5% target amid trade tensions and real estate downturn. National Statistics Bureau data showed retail sales growth weakened to 0.9% in December. Fixed-asset investment contracted 3.8% for the full year, while real estate investment plunged 17.2%. The economy’s resilience was largely supported by a record trade surplus of nearly $1.2 trillion. Economists warn that overreliance on exports is unsustainable, urging reforms to boost domestic demand.

Related reading: China birthrate hits lowest since 1949 in blow to baby drive