BEIJING – China’s gross domestic product (GDP) grew by 5.3% year-on-year in the first half of 2025, surpassing the government’s target of approximately 5% and defying global economic headwinds. The National Bureau of Statistics (NBS) reported that the GDP reached 66.05 trillion yuan (approximately $9.24 trillion), with the second quarter alone seeing a 5.2% increase compared to the same period last year.
The growth was primarily driven by robust industrial output, which rose by 6.4%, and a strong export performance, particularly to Southeast Asia, Africa, and the European Union. Exports to the United States, however, declined by 10.7% year-on-year, reflecting the ongoing trade tensions and tariff impositions.
Domestic consumption showed signs of recovery, with retail sales of consumer goods increasing by 5.0% in the first half of the year. Fixed-asset investment also grew by 2.8%, with notable gains in manufacturing-related sectors. The services sector expanded by 5.5%, led by information technology services, leasing, and business services.
Despite these positive indicators, challenges remain. The real estate sector continues to experience a downturn, with property investment declining by 11.2% in the first half of 2025. Additionally, deflationary pressures persist, with the producer price index falling by 2.8% year-on-year.
The government’s proactive macroeconomic policies, including measures to stimulate consumption and investment, have been credited with supporting the economy’s resilience. However, analysts caution that sustaining growth will require addressing structural issues such as weak consumer confidence and overcapacity in certain industries.
Looking ahead, China aims to maintain steady economic growth while navigating external uncertainties and internal challenges. The government’s focus will be on fostering innovation, upgrading industrial capabilities, and promoting balanced development across regions.
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