China says its economy is growing, but doubts remain — Bloomberg
Photo: Chinese leader Xi Jinping (GettyImages)
Chinese President Xi Jinping said that the Chinese economy will reach its planned growth rate in 2025 and called the year “extraordinary.” But investments are falling sharply, as is retail sales growth, reports Bloomberg.
“China’s economy is forging ahead under pressure, moving toward innovation and quality, demonstrating strong resilience and vitality. The growth rate is expected to reach around 5%, continuing to rank high among the world’s major economies,” the Chinese leader said.
The agency writes that, overall, the country's economy showed decent results in 2025. Momentum was maintained without large-scale new stimulus measures due to export growth, while manufacturers took a higher position in the value chain.
At the same time, investment is heading for its first annual decline since 1998, and retail sales growth is showing its worst pace outside the pandemic period. The cost of new housing fell in November amid a protracted crisis in the real estate sector.
The decline in investment may be part of the Chinese leadership's plan. Xi Jinping said that the country should resolutely crack down on "reckless" projects and emphasized the priority of quality over speed in economic development.
The rate of decline in industrial companies' profits has accelerated significantly in China, demonstrating the fragility of the country's economic recovery. Weak domestic demand in the country has offset export revenues.
