China’s Economic Growth Slows Despite Meeting 5% Target

China’s economy slowed toward the end of 2025, even though the country met its official 5% annual growth target. Data shows the economy grew 4.5% in the final quarter, the weakest pace since China reopened after Covid lockdowns in late 2022.

While factories and exports remained strong, consumer spending and business investment stayed weak. A soft job market and falling home prices continue to weigh on domestic demand, limiting economic recovery.

Exports played a major role in supporting growth, accounting for around one-third of China’s economic expansion in 2025, the highest share in decades. However, economists warn that relying heavily on exports may be difficult to sustain as global trade barriers increase.

Looking ahead, analysts expect uneven growth to continue in 2026, with Beijing unlikely to launch large stimulus measures due to concerns over rising government debt. Ongoing deflation and weak domestic demand remain key risks for the world’s second-largest economy.