China’s economy grows 5.3% amid headwinds

Domestic demand remains primary driver of growth. Ouyang Shijia and Yin Mingyue report

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The Chinese economy grew 5.3 per cent year-on-year in the first half of 2025, defying global headwinds and providing a solid basis for the full-year growth target of around 5 per cent to be reached.

Analysts said they expect the momentum to continue in the second half of the year, given the government's ample policy room and tools, steady recovery in domestic demand and the resilience in exports.

China's top leadership may sharpen its focus on maintaining economic stability and restoring market confidence, with strong fiscal stimulus and further monetary easing to stimulate domestic demand and cushion against external headwinds, they said.

China's GDP rose 5.2 per cent year-on-year in the second quarter of this year, compared with a rise of 5.4 per cent in the first quarter, the National Bureau of Statistics said.

Foreign trade grew 2.9 per cent year-on-year to 21.79 trillion yuan ($3.04 trillion) in the first half of the year, the General Administration of Customs said.