China's Economy Grows 5.3% in First Half of 2025
On July 15, the National Bureau of Statistics (NBS) released the latest economic data, showing that China’s GDP grew by 5.3% year-on-year in the first half of 2025.
According to the NBS, the gross domestic product (GDP) reached 66.0536 trillion yuan in the first six months, calculated at constant prices. By sector:
Primary industry (agriculture, forestry, fishing, etc.) grew by 3.7%, reaching 3.1172 trillion yuan.
Secondary industry (manufacturing, construction, etc.) expanded by 5.3%, totaling 23.905 trillion yuan.
Tertiary industry (services) rose by 5.5%, contributing 39.0314 trillion yuan.
Quarterly breakdown:
Q1 2025: GDP growth at 5.4%
Q2 2025: GDP growth at 5.2%
Quarter-on-quarter, Q2 GDP increased by 1.1%.
Consumption Plays a Larger Role in Growth
The contribution of consumption to economic growth has strengthened. In 2024, final consumption expenditure accounted for 44.5% of GDP growth, but this figure rose to 52% in H1 2025—reflecting the gradual impact of policies aimed at boosting consumption and domestic demand.
Net Exports Remain a Key Driver
Despite global economic uncertainties, net exports of goods and services contributed 31.2% to GDP growth in H1 2025, up from 30.3% in 2024. According to customs data released on July 14, goods exports surged to 13 trillion yuan, a 7.2% increase year-on-year.
However, China-US trade saw a decline:
Total bilateral trade: 2.08 trillion yuan (↓9.3%)
Exports to the US: 1.55 trillion yuan (↓9.9%)
Imports from the US: 530.35 billion yuan (↓7.7%)
After Q1 growth, Q2 saw a sharp 20.8% drop in trade with the US.
Investment Contributes 16.8% to Growth
As one of the "three key drivers of the economy" (alongside consumption and exports), investment contributed 16.8% to GDP growth in H1, with Q2 alone reaching 24.7%. Key highlights:
Manufacturing investment grew by 7.5%, accounting for 25.2% of total fixed-asset investment (up 1.1 percentage points YoY).
High-tech services investment rose by 8.6%, significantly outpacing overall investment growth.
Outlook: Exceeding Annual Growth Target
The government’s 2025 GDP growth target is set at around 5%, making the H1 performance slightly better than expected.
Sinobravo Policy Research Team will continue monitoring China’s economic developments and provide timely analysis. Stay tuned for updates.
-END-