China says economy grew 5% last year, among slowest in decades

Leaders aimed for a growth target of "around five per cent" last year, building on a five per cent increase in 2024.

The economy grew by 4.5-5 per cent between October and December, aligning with expectations, though there was a noticeable slowdown toward the year's end.

Even though China's GDP was enough for officials to celebrate, experts caution that growth has been uneven and that the numbers do not tell the whole story, as underlying sentiment remains shaky.

Consumers in China still feel uncertain about the economy and face high unemployment, despite officials' efforts to boost spending through relaxed fiscal policies and subsidies to replace household items, which have had limited success.

Retail sales, an important sign of consumer activity, increased by just 0. 9 per cent year- on- year in December- the softest growth since late 2022 when COVID restrictions were lifted.

This was also a dip from the 1.3. 3 per cent growth in November, continuing a slowdown that's been ongoing for several months. Once a strong indicator of the country's economic health,

China's property sector has struggled in recent years due to a debt crisis, despite rate cuts and eased home-buying restrictions.

Fixed-asset investments fell by 3.8 per cent in 2025 compared to the previous year, reflecting a natural shift after decades of a property and infrastructure boom.

Real estate investment was down 17.2. 2 per cent last year.

While house prices have slightly increased in some large cities, the overall real estate market remains sluggish.

The past year also brought notable political events- Donald Trump's return to the White House and a revived trade war between the two biggest economies.

When President Xi Jinping and Trump met in late October, they agreed to a temporary truce, pausing some of the more intense measures, such as tariffs.

Official data shows that Chinese exports to the U.S. dropped by 20 per cent in 2025, while demand for Chinese goods elsewhere remained strong.

Despite the trade tensions, exports continued to shine as a bright spot, with

China's trade surplus reached a record $ 1. 2 trillion last year. Officials celebrated this milestone, noting it as a new historical high, supported by growth with other trade partners as well.

Exports to Southeast Asian nations (ASEAN) increased by 13.4 per cent year-on-year, and exports to Africa grew by 25.

8 per cent, and exports to the European Union rose by 8. 4 per cent, although imports from the EU saw a slight decline.