China’s economic growth slows to 4.5% in fourth quarter

China’s economy grew at its slowest pace in nearly three years in the final quarter of 2025, as weak consumer spending and a prolonged property downturn weighed on growth, official data showed on Monday.

Gross domestic product expanded 4.5% in the October to December period, down from 4.8% in the previous quarter, according to the National Bureau of Statistics of China. The reading matched the weakest quarterly growth since early 2023.

Despite the slowdown, China’s full-year GDP grew 5%, meeting the government’s official target of around 5%.

Consumer demand remained soft. Retail sales rose just 0.9% in December, the weakest pace since late 2022 and below market expectations. The data highlighted continued caution among households amid falling property prices and weak income growth.

Industrial activity, however, showed resilience. Industrial output increased 5.2% in December, beating forecasts and improving from the previous month.

Investment continued to decline. Fixed-asset investment fell 3.8% in 2025, while property investment dropped 17.2%, deepening the slowdown in the real estate sector.

The urban unemployment rate remained unchanged at 5.1% in December.

China’s growth last year was largely supported by exports. The country recorded a near-record trade surplus of about $1.2 trillion, as exporters redirected shipments to non-U.S. markets to offset tariff pressures.

Officials said more policy support may be needed to boost domestic demand. The People’s Bank of China recently announced additional credit-easing measures to support lending and economic activity.