China's Economic Growth Struggles Amid Domestic Challenges

China's economic growth slowed to a three-year low at 4.5% in the fourth quarter of 2025 due to weak domestic demand, although it met the annual target of 5%. This deceleration, amidst trade tensions and structural challenges, signals an uneven economic momentum as China enters 2026.

China experienced its slowest economic growth in three years during the last quarter of 2025, with a 4.5% expansion, pressured by declining domestic demand and ongoing property sector struggles.

The country's annual growth target of 5% was met, yet analysts caution that the momentum is uneven as manufacturing outperforms while consumption underwhelms.

Amid increasing global trade uncertainties and domestic structural issues, China's future economic outlook is shadowed by a need for significant reforms to bolster household consumption and stabilize the property market.