China's economy expanded by 5 percent in 2025, marking one of its weakest growth rates in decades, according to official statistics released Monday by the country's National Bureau of Statistics. The world's second-largest economy saw a 4.5 percent increase in the final quarter of the year, ending in December.

The reported growth figures, while positive, signal a continued slowdown compared to China's historical economic performance. Analysts point to a combination of factors contributing to the deceleration, including ongoing challenges in the property sector, subdued consumer spending, and persistent global economic headwinds.

The 5 percent growth rate falls short of the government's earlier projections and raises concerns about the long-term trajectory of the Chinese economy. The property sector, a significant driver of growth in previous years, continues to struggle with debt and declining sales, impacting related industries.

Subdued consumer spending reflects a cautious sentiment among households, influenced by uncertainties surrounding employment and income prospects. This has led to a decrease in retail sales and overall domestic demand.

The global economic slowdown, characterized by rising interest rates and geopolitical tensions, has further weighed on China's export-oriented economy. Reduced demand from key trading partners has impacted manufacturing output and overall economic activity.

The National Bureau of Statistics acknowledged the challenges but emphasized the resilience of the Chinese economy. Officials stated that the government is committed to implementing policies to stimulate growth, including targeted fiscal measures and structural reforms.

The reported growth figures are likely to have a mixed impact on global markets. While the positive growth rate provides some reassurance, the slower pace raises concerns about the potential impact on global demand and commodity prices. Investors will be closely monitoring China's policy response and the evolution of economic conditions in the coming months.