The Chinese economy dipped to its weakest pace in the year to less than 5%, dragged down by sluggish domestic demand and tensions with the US.According to figures released by the National Bureau of Statistics on Monday, the economy grew 4.8% from July to September, marking the slowest period since the third quarter of 2024. In the previous quarter, it registered a 5.2% growth.
Meanwhile, on a quarterly basis, the GDP grew 1.1% in the third quarter, beating the 0.8% increase forecast and revised 1.0% gain in the previous quarter, according to a Reuters report.For the first nine months of 2025, the country’s GDP grew 5.2% year-on-year.However, exports remained relatively strong, as Chinese companies shifted their focus to other global markets, facing higher tariffs from US, under President Donald Trump.Retail sales in September increased just 3% as compared with a year earlier, marking the slowest rise since November, reflecting challenges in consumer spending.Industrial production, exceeded expectations, growing 6.5% in September, compared with forecasts of 5%, providing a rare bright spot in an otherwise sluggish economy.Fixed-asset investment fell 0.5% during the first nine months of the year, marking its first contraction since 2020, according to Bloomberg. Analysts had predicted GDP growth of 4.7% for the quarter.Property investment in the country remained weak, falling 13.9% in the first three quarters weighing down both economic growth and consumer confidence, with momentum further hit by the ongoing US trade tensions.Overall, China’s economy slowed for a second consecutive quarter. While exports and industrial output showed strength, reduced spending by households and companies kept growth subdued.
