China's economy grows 5.3 percent despite global challenges

In 2025, China's economy demonstrated notable resilience by achieving a year-on-year growth rate of 5.3 percent in the first half of the year, according to data from the National Bureau of Statistics. This growth occurred despite facing significant global economic headwinds, indicating a robust domestic market and steady exports that supported overall economic performance. Analysts have asserted that this upward momentum can be sustained in the latter half of the year as government policies are expected to bolster economic stability. Key initiatives aimed at stimulating domestic demand and restoring market confidence have been reinforced by leaders in the Chinese government, who are prepared to implement further fiscal and monetary policies to encourage continued growth. The second quarter of 2025 showcased a slight moderation in growth, with the GDP rising by 5.2 percent, down from a 5.4 percent increase in the first quarter. Additionally, foreign trade increased by 2.9 percent, reaching a significant value of 21.79 trillion yuan in the first six months. Retail sales, a vital indicator of consumer spending, registered a rise of 4.8 percent in June, contributing positively to the economic landscape. This retail growth reflects an increase from 4.6 percent in the first quarter, showcasing that final consumption is the main generator of GDP growth during this period. Analysts including Louise Loo from Oxford Economics assessed the performance positively, emphasizing that strong fiscal stimulus measures are being ramped up to navigate challenging external environments. They anticipate a renewed focus on policies aimed at boosting consumer demand, which accounted for 52 percent of the overall economic expansion in the first half of the year. Creatively structured fiscal policies are being discussed along with unconventional countercyclical adjustments designed to assist the economy, especially in sectors like real estate and consumer services. Looking ahead, the projections for the second half of 2025 imply that China's economy will benefit from an array of innovative policy tools specifically designed to address the shifting economic landscape. The government is keen on sustaining the upward trajectory, particularly in the service and consumption sectors, indicating confidence in the resilience of China's economy amid ongoing global challenges.