China’s Economy Outperforms Predictions, Growing 1.1% in Q2 and 5.2% Annually

China’s economy, the world’s second largest, posted a 1.1% expansion between April and June 2025, a tenth less than in the first quarter of the year, but above market consensus projections, the National Bureau of Statistics (NSO) has reported.

Compared to the second quarter of last year, China’s GDP grew by 5.2%, two tenths less than in the first three months of 2025, despite the impact of trade tensions with the United States.

Thus, China’s GDP growth in the first half of 2025 was 5.3%, including an expansion of the primary sector of 3.7%, while industry grew by 5.3% and the services sector by 5.5%.

China’s National Bureau of Statistics has highlighted that, in the first half of the year, the Asian giant’s domestic economy “withstood pressure and achieved steady improvement despite challenges.“

China’s GDP grew by 5.3% in the first half of 2025

In this regard, Lynn Song, chief China economist at ING Research, notes that the second quarter GDP growth figure “again exceeded forecasts”, although the expert acknowledges concerns about sharper-than-expected slowdowns in fixed asset investment and retail sales, as well as falling real estate prices.

“China remains on track to achieve this year’s growth target, although there could be a slowdown,“ the economist anticipates in reference to the expansion target of around 5% set by Beijing for 2025.

Louise Loo, chief Asia economist at Oxford Economics, also notes that the second-quarter figure “slightly exceeded consensus expectations”, although she warns that demand for the second-quarter figure “is expected to be slightly higher than consensus expectations”.However, she warns that private domestic demand “remains fragile and could weaken further in the coming months”, and therefore ratifies the growth projection for 2025 of 4.7%.