Losing Momentum: China’s Economy Records 4.9% Growth in Q3

KUALA LUMPUR, El Sky News – The economy of the People’s Republic of China, the world’s second-largest economic powerhouse, recorded a more moderate pace of growth in the third quarter of this year—signalling that its post-pandemic recovery is gradually losing steam. Latest data shows that China’s Gross Domestic Product (GDP) expanded by only 4.9% for the July to September 2025 period.

Although the figure slightly exceeded market analysts’ consensus forecast of around 4.4%, it still reflects a notable slowdown compared with the strong 6.3% growth achieved in the second quarter (Q2) of 2025.

Recovery Facing Increasing Headwinds

The sharp quarterly deceleration has raised concerns over China’s economic trajectory, particularly as the nation has historically been a key driver of global demand and regional supply chain stability.

According to economic sources in Beijing, the slowdown stems from a combination of pressing challenges:

• Property Sector Crisis: Prolonged debt issues among major developers and declining real estate investment continue to weigh on consumer and investor confidence.
• Weak Domestic Demand: Chinese consumers are becoming increasingly cautious, partly due to high youth unemployment and uncertain economic prospects.
• Export Pressures: Softer demand from international markets—especially the United States and Europe—has affected China’s manufacturing and export sectors.

Still Confident of Hitting 5.0% Target

Despite the mounting challenges, the Chinese government remains optimistic about achieving its full-year GDP growth target of around 5.0% for 2025.

This confidence is supported by strengthened fiscal and monetary stimulus measures recently introduced by Beijing, including liquidity injections into the banking system and the issuance of billions of yuan in special government bonds to finance infrastructure development.

International analysts believe that with more assertive government intervention in the fourth quarter, China still has a realistic chance of meeting its 5.0% target—thereby helping to cushion potential spillover effects on Asian and global economies.