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China Meets 5% Growth Target for 2025 as Q4 Cools to 4.5%

Analysts warn of an export-heavy rebound masking weak consumption.

Overview

  • Official data show fourth-quarter GDP rose 4.5% year over year, the weakest pace since the end of COVID lockdowns.
  • December retail sales increased 0.9%, marking the slowest growth since restrictions were lifted.
  • Fixed-asset investment fell 3.8% in 2025, with property investment contracting 17.2% over the year.
  • Beijing reported a record $1.2 trillion trade surplus, with exports to the U.S. down about 20% as shipments to ASEAN, Africa and the EU rose.
  • Major forecasters expect slower growth in 2026—around 4.4% to 4.5% from the World Bank and IMF, with Goldman Sachs at 4.8%—citing property strains and high local-government debt.