China’s economy grew at a steady 5.2 percent annual pace in the second quarter of 2025, slightly below the 5.4 percent growth recorded in the first three months of the year, according to official data released on Tuesday.
On a quarterly basis, the world’s second-largest economy expanded by 1.1 percent, despite ongoing trade tensions with the United States.
According to National Bureau of Statistics, China’s economy grew by 5.3 percent in the first half of 2025, with strong export performance helping soften the headwinds caused by ongoing trade war with US.
A sharp recovery in exports, particularly in June, played a major role in supporting this growth.
On Monday, Government figures released on Monday showed that exports rose by 5.8 per cent in June compared to same month last year, up from a 4.8 per cent increase in May, which was partly driven by a temporary relaxation of tariffs, leading to a surge in overseas orders.
The restart of trade talks between Beijing and Washington made foreign buyers rush their orders in anticipation of a potential tariff hike. Meanwhile, Chinese companies began manufacturing more products in other countries, expanding their sales in new markets and decreasing their dependence on the US.
China’s gross domestic product (GDP) stood at 66,053.6 billion yuan (approximately Rs 75.7 lakh crore) in the first half of 2025, marking a 5.3 percent increase from the same period last year. The farming and related sector grew by 3.7 percent to 3,117.2 billion yuan (around Rs 3.57 lakh crore).
The industrial and construction sector rose by 5.3 percent to 23,905.0 billion yuan (about Rs 27.38 lakh crore), while the services sector increased by 5.5 percent to 39,031.4 billion yuan (roughly Rs 44.75 lakh crore).
In terms of quarterly performance, the economy grew by 5.4 percent year-on-year in the first quarter and by 5.2 percent in the second. Compared to the previous quarter, the April–June period showed a growth of 1.1 percent.
“Generally speaking, with the more proactive and effective macro policies taking effect … the national economy maintained steady growth with good momentum, showcasing strong resilience and vitality,” the National Bureau of Statistics said in its report.
However, a 0.1 percent decline in consumer prices during the first half of 2025 pointed to continued weakness in domestic demand. This reflects a broader structural challenge for China’s leadership, which is working to rebalance the economy towards household consumption rather than relying heavily on exports and investment.
