China's gross domestic product (GDP) expanded by 5% on year in 2025, hitting Beijing's target, but the huge domestic economy remains hamstrung by sagging property markets and tepid consumer spending, reported officials on Monday.
Assisted by strong exports, China's GDP grew by 4.5% on-year in the fourth quarter, to bring the full-year expansion to 5%, reported the National Bureau of Statistics (NBS). The fourth quarter marked the slowest on-year GDP increase since the same period of 2022.
Dogging China's economy in 2025 have been declining property markets and soft consumer spending, both of which were prominent in late 2025.
In December, China's retail sales rose a scant 0.9% on year, the most meager increase since December 2022, as a soft jobs market and shrinking home values pressured consumer spending.
House prices in China in December fell 2.7% on year, extending a strong of on-year declines that stretches nearly unbroken back to May of 2022, according to NBS data collected from 70 cities. The sagging property values tend to undermine consumer confidence, and may force many shoppers into greater savings to prepare for retirement or other expenses.
Though less noted, office tower values have been in a similar decline across China. Real estate brokerage CBRE recently forecast continued slump in office rents through 2026, citing oversupply.
In 2025, China's fixed-asset investment (capital outlays on long-term assets such as machinery and buildings to enhance production) fell 3.8% on year in December, in part reflecting a large 17.2% decline in outlays on structures. Infrastructure spending slipped 2.2%, while spending on manufacturing equipment rose marginally.
China's industrial production in 2025 was a relative bright spot, rising 5.2% on year in December, and gaining 0.5% from November, according to NBS figures. For the full year 2025, value-added of industrial production rose 5.9%, according to officials
China's manufacturing benefitted as, despite US tariffs, the nation's exports in 2025 gained 5.5% on year, resulting in all-time zenith trade surpluses, the General Administration of Customs reported last week.
Despite strength in factory production, Beijing officials also reported stubbornly and relatively high unemployment, striking 5.1% in December, unchanged from November.
In addition, China's average household income in 2025 gained 5% on year, while the nation's population shrank marginally, reported Beijing.
For 2026, China's economy is expected to expand by 4.4% on year, the World Bank estimated in December.
"Consumer spending growth (in 2026) is expected to remain subdued, due to a soft labor market and further decline in property prices. Investment will receive a modest boost from the additional fiscal stimulus," said the World Bank. "However, weak profit growth and continued adjustment in the property-sector could hinder a strong rebound."
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