China has hit 5% growth - Only India has beat that and UK trailing

19th January 2026

China achieved 5% GDP growth in 2025 through strong exports, policy support, and resilience against external shocks like the US trade war.

Compared globally, this growth is above the world average (2.8%), stronger than the Eurozone (0.8%), but lower than India (6.5%), which remains the fastest-growing major economy.

How China Achieved 5% Growth
Resilient exports: Despite US tariffs, Chinese exports surged, helping offset external pressures.

Policy support: Fiscal stimulus, infrastructure investment, and monetary easing cushioned domestic demand.

Sectoral strength: Manufacturing and technology sectors remained robust, while services showed steady recovery.

Government target alignment: Growth matched Beijing's official target of "around 5%," reinforcing confidence in its economic planning.

Quarterly moderation: Growth slowed across the year (Q1: 5.4%, Q4: 4.5%), showing momentum but also underlying structural challenges.

Risks and Trade-offs
China's growth quality: Heavy reliance on exports and stimulus raises concerns about debt and long-term sustainability.

Global comparison: While China outpaces advanced economies, it lags behind India's rapid expansion.

Structural challenges: Aging population, property sector weakness, and geopolitical tensions could slow future growth.

Key Takeaways
China's 5% growth is a significant achievement given global headwinds.

It positions China as a middle performer: stronger than advanced economies but behind India among major players.

The global economy remains sluggish, with emerging markets driving most of the momentum.

UK Government Forecast May 2025
https://assets.publishing.service.gov.uk/media/682da9ff7fb7a7d9cd775149/Forecasts_May_2025_amended.pdf