China’s economy grew by 5% last year, as record exports helped Beijing meet its annual growth target, according to Chinese government figures.
But the data also showed economic growth slowed to a rate of 4.5% in the final three months of 2025 compared to a year earlier.
Beijing had set a goal of “around 5%” economic growth in 2025, despite struggles to boost domestic spending and a prolonged property crisis.
China reported the world’s largest-ever trade surplus last week – the value of goods and services sold overseas compared to its imports – of $1.19tn (£890bn), driven by a rise in exports to markets outside the US, as President Donald Trump continued his tariffs policy.
Speaking on Monday, Kang Yi, head of China’s National Bureau of Statistics, said the country’s economy “faces problems and challenges, including strong supply and weak demand”, but added that it will be able to “maintain stable, sound growth momentum this year.”
China’s reliance on exports is likely to be tested in the year ahead, as the Trump administration continues to use tariffs as a key economic policy. The US president recently threatened to impose new levies on countries that trade with Iran or oppose his plan to take control of Greenland.
As well as China’s exporters moving away from the American market, China’s economic resilience was helped by lower-than-expected US tariffs after Beijing and Washington agreed a tariffs pause.
While China’s manufacturers continued to boost exports, the country is grappling with a number of issues in its domestic economy.
Beijing has been struggling with an ongoing property crisis and rising local government debt, which has made businesses more hesitant to invest and consumers cautious about spending.
New data on Monday showed that house prices continued to fall in December, as the government struggled to stabilise China’s property market. Prices dropped 2.7% last month compared to a year earlier, the sharpest decline in five months. Property investment also fell 17.2% last year.
“China’s reported GDP of 5% is not surprising given the political incentives to ensure headline stability, but this clearly masks the horrible investment data,” said Louise Loo, Head of Asia Economics at Oxford Economics.
Retail sales grew just 0.9% in December, the slowest rate in three years, although the country’s factory output rose 5.2% in December from a year earlier, beating the 4.8% growth in November.
Chinese leaders have pledged “proactive” fiscal policies this year as they look to increase domestic spending and shift reliance away from exports and investments.
Elsewhere, China’s demographic crisis continues to worsen, with its population falling for a fourth year in a row.
The total number of people in China dropped by 339 million to 1.41 billion in 2025, according to the country’s National Bureau of Statistics. At the same time, the birth rate dropped to 5.63 births per 1,000 people.
China’s population is also rapidly ageing, adding to the challenges facing Beijing’s leaders. Hundreds of millions of people are expected to leave the workforce over the next decade.
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