HONG KONG (AP) – China’s economy expanded at an annual rate of 5% in 2025, supported by strong exports despite U.S. President Donald Trump’s tariffs.
However, the government announced on Monday that growth slowed to 4.5% in the last quarter of the year. This was the slowest quarterly growth since late 2022, at the height of the coronavirus pandemic. The world’s second largest economy grew rapidly Annual rate of 4.8% in the previous quarter.
china Leaders have sought to foster faster growth after the economic recession. real estate market And the disruption caused by the pandemic spread throughout the economy.
As expected, last year’s annual growth rate was in line with the government’s official target of an expansion of “around 5%”.
Strong exports offset weak consumer spending and business investment, contributing to a record trade surplus. 1.2 trillion dollars.
“The key question is how long this growth engine will remain the main driver,” Lin Song, chief economist for Greater China at Dutch bank ING, wrote in a recent note.
China’s exports to the United States have suffered since President Donald Trump returned to power early last year and began raising tariffs. However, that decline was offset by shipments to other parts of the world. The surge in imports of Chinese goods has prompted some other governments to take steps to protect local industries, in some cases raising import duties.
“Wouldn’t it be better if more countries started tightening tariffs on China?” Mexico did it And the EU is threatening that we will eventually see even more tightening,” Song said.
Follow our WhatsApp channel for news and AP updates.
continue
Chinese leaders have repeatedly emphasized expanding domestic demand as a policy focus, but the effects have so far been limited. A trade-in program that allows drivers to trade in their old car for a more energy-efficient model. for example, is losing momentum In the last few months.
“Stabilizing the domestic real estate market is not necessarily a recovery, but it is key to restoring public confidence and, in turn, restoring growth in household consumption and private investment,” said Chi Lo, senior market strategist for Asia Pacific at BNP Paribas Asset Management.
China also offers trade-in subsidies for home appliances such as refrigerators, washing machines, and televisions. Weiheng Chen, global investment strategist at JPMorgan Private Bank, said in a recent note that major consumer stimulus packages for 2025, including these subsidies, are expected to continue in 2026 but may be scaled back.
investment in artificial intelligence Other advanced technologies remain a key priority for China’s ruling Communist Party, many of which are seeking to increase their independence and compete with the United States. I am struggling with Tough times and worrying uncertainty around employment and income.
Some economists and analysts believe that China’s actual economic growth in 2025 was slower than official data shows. Last month, think tank Rhodium Group predicted that China’s economy would only grow by 2.5% to 3% last year.
According to government data, China’s economy expanded at an annual rate of 5% in 2024 and 5.2% in 2023. Ambitious official growth targets have also been on the decline over the past few years. 6% to 6.5% in 2019 By 2025, it will be around 5%.
Annual economic expansion is expected to slow in 2026. Deutsche Bank predicts that China’s economic growth rate will be around 4.5% in 2026.
Neil Thomas, a researcher at the Asia Social Policy Institute’s Center for China Analysis, said China could probably maintain social stability with lower economic growth rates, but Beijing “wants the economy to keep growing.”
He added that China will likely need to maintain expansion of around 4-5% per year to reach its soft target of $20,000 per capita gross domestic product (GDP) by 2035.
