In a significant year-end address, Chinese President Xi Jinping revealed that the nation's economy is projected to have expanded by approximately five percent in 2025. This announcement underscores China's resilience in navigating what President Xi termed a "very unusual" year marked by considerable economic headwinds.
Xi's New Year's Eve Address on Economic Performance
The statement was delivered by President Xi during his speech to the Chinese People's Political Consultative Conference (CPPCC) on New Year's Eve, as reported by the official Xinhua news agency. He acknowledged that the country faced significant pressure but confronted challenges directly through diligent effort. The anticipated growth rate of "around five percent" aligns perfectly with the government's official target set for the year and matches the five percent growth recorded in 2024.
President Xi emphasised that the main goals for economic and social development were successfully achieved. He also highlighted that overall social stability was maintained and the ongoing campaign against corruption was pursued relentlessly throughout this period.
Persistent Challenges in the World's Second-Largest Economy
This growth comes against a backdrop of sustained pressure on China's vast economy. Consumer confidence has struggled to rebound fully following a severe downturn induced by the pandemic. Furthermore, the economy has been grappling with a trio of major internal and external challenges:
- A deep and persistent debt crisis within the crucial property sector.
- Issues related to industrial overcapacity in several key industries.
- Escalating trade tensions and conflicts with the United States.
These factors have collectively cast a shadow over the nation's economic prospects, making the achievement of the growth target noteworthy.
Positive Signals and Future Projections
In a positive development for policymakers, data released on Wednesday offered a glimmer of hope. Factory activity in December 2025 showed a slight expansion, breaking an eight-month consecutive period of contraction. This return to growth in the manufacturing sector is a crucial indicator of industrial health.
Looking ahead, economic experts widely anticipate that Beijing will formalise a similar economic growth target for the year 2026. This official announcement is expected to be made during the major annual political gathering scheduled for early March. The consistent targeting of around five percent growth reflects a strategic focus on stable, sustainable expansion amidst global and domestic uncertainties.
