China's economy expanded by exactly 5% in 2025, meeting its official growth target, fueled by a rebound in global exports and sustained domestic demand. The performance underscores resilience amid ongoing structural challenges.
- China achieved 5.0% GDP growth in 2025, meeting its official target.
- Merchandise exports rose 9.8% year-on-year, driving overall growth.
- Industrial output expanded by 5.9%, supported by high-tech and green manufacturing.
- Fixed asset investment grew 4.5%, with infrastructure and manufacturing leading.
- Urban unemployment held steady at 5.2%, within government targets.
- CSI 300 index gained 12.7% over the year, reflecting market confidence.
China’s gross domestic product grew by 5.0% year-on-year in 2025, matching the government's annual target set at the beginning of the year. This marked a solid recovery from the 4.3% expansion recorded in 2024, reflecting stronger-than-expected export dynamics and steady activity in key industrial sectors. The export sector played a pivotal role, with merchandise exports increasing by 9.8% in nominal terms for the full year. This surge was driven by robust demand for electric vehicles, solar panels, and electronics, particularly in Europe and Southeast Asia. Meanwhile, imports rose 6.1%, indicating renewed domestic consumption and investment appetite. Key indicators revealed a broad-based recovery: fixed asset investment increased by 4.5%, led by infrastructure and manufacturing upgrades, while retail sales grew by 6.3%. Industrial output expanded by 5.9%, highlighting continued momentum in high-tech and green manufacturing sectors. Urban unemployment remained stable at 5.2%, within the government’s target range. Financial markets responded positively, with the CSI 300 index closing the year up 12.7% and bond yields stabilizing. International investors signaled renewed confidence in China’s macroeconomic management, although concerns remain over property sector adjustments and regional debt pressures.