BEIJING, October 20, 2025: China’s economy grew by 4.8% in the third quarter of 2025 compared to the same period last year, in line with expectations but reflecting the slowest pace of expansion in a year. Data released Monday by the National Bureau of Statistics showed quarterly growth at 1.1%, slightly higher than the previous quarter’s 0.8% increase. The figures keep China broadly on track to achieve its full-year target of around 5%, but several indicators within the report signaled weakening momentum across key sectors.
The slowdown was mainly attributed to declining investment and ongoing weaknesses in the property sector. Fixed-asset investment, a traditional pillar of China’s growth, fell by 0.5% in the first nine months of the year, a rare contraction outside of the pandemic period. In September alone, property investment dropped 13.9% year-on-year, deepening from a 12.9% decline in August. The continued downturn in the real estate sector, which has long driven domestic demand, has weighed heavily on related industries and consumer sentiment.
Retail sales, another core measure of domestic activity, rose 3.0% in September from a year earlier, slowing from a 3.9% gain in August. Industrial production grew by 6.5%, accelerating from the previous month, although that increase was largely attributed to gains in external-facing manufacturing sectors. Unemployment in urban areas remained stable at 5.0%, though youth joblessness, which reached record highs earlier in the year, was not disclosed.
Property sector downturn deepens economic pressure
The export sector provided some support for growth, although headwinds remained. While total exports grew during the quarter, shipments to the United States dropped sharply by 27% year-on-year in September, following continued tariff pressures and broader geopolitical tensions. Imports declined by 6.2%, reflecting subdued domestic demand and reduced consumption of raw materials.
China’s official figures come as global investors and analysts watch closely for signs of economic stabilization in the world’s second-largest economy. The year-on-year GDP reading marks a significant slowdown from the 6.3% recorded in the second quarter, which was inflated by a low base from COVID-19 restrictions in 2022. The third quarter results instead reflect more normalized comparisons, exposing challenges that have persisted through much of the post-pandemic recovery.
Despite the overall growth aligning with targets, concerns persist over the structure and quality of the expansion. The continued slump in real estate investment and sluggish consumer spending suggest that domestic demand remains under pressure, even as industrial output and trade offer limited relief. The data release coincided with the start of the Communist Party of China’s fourth plenary session, where top leaders are expected to review the country’s development strategy for the next five years.
Consumption recovery slows in September metrics
No new economic measures were announced alongside the data, and authorities have maintained a cautious approach to stimulus this year. In the January-to-September period, infrastructure investment increased by 5.1%, but this was not enough to offset the broader decline in real estate. Manufacturing investment grew 6.3%, though growth in high-tech sectors showed signs of moderation.
Private-sector investment fell 0.6%, reflecting weaker confidence compared to state-led enterprises, which expanded investment by 6.4%. The figures indicate that while China is on track to meet its annual growth target, economic recovery remains uneven, with persistent structural challenges in investment, consumption, and property continuing to impact overall performance. – By Content Syndication Services.