China’s Growth Eases: Q3 GDP Slows To 4.8% Amid Property And Trade Pressures

Image Source: Bloomberg.com

China’s economy grew 4.8% year-on-year in Q3 2025, matching forecasts but marking its slowest pace in a year. The slowdown reflects persistent property sector woes and renewed trade tensions. Policymakers face mounting pressure to introduce stimulus as full-year growth risks falling short of the 5% target.

Growth slows but stays on track

China’s gross domestic product expanded by 4.8 percent in the third quarter of 2025, according to official data released by the National Bureau of Statistics. While the figure aligns with analyst expectations, it represents a deceleration from the 5.2 percent growth recorded in Q2, making it the slowest quarterly pace since Q3 2024.

On a quarterly basis, GDP rose 1.1 percent, slightly above the forecasted 0.8 percent, indicating some resilience despite headwinds. The World Bank had recently revised its full-year growth forecast for China to 4.8 percent, citing stronger-than-expected exports and stock market performance.

Property slump and trade tensions weigh heavily

The slowdown is largely attributed to a prolonged downturn in China’s property sector and escalating trade tensions with the United States. These factors have dampened domestic demand and investor confidence, prompting calls for more aggressive stimulus measures.

Beijing has so far opted for modest support, aiming to preserve policy flexibility. Analysts remain divided on whether the government will introduce broader stimulus before year-end, especially with Q4 growth projected to ease further to 4.3 percent.

Key highlights from China’s Q3 GDP report

- GDP grew 4.8 percent year-on-year in Q3 2025, in line with forecasts
- Quarterly growth stood at 1.1 percent, beating expectations
- Slowest annual pace since Q3 2024
- Property sector downturn continues to drag on domestic demand
- Trade tensions with the U.S. add pressure on exports and sentiment
- World Bank revised full-year forecast to 4.8 percent from 4 percent
- Q4 growth expected to slow further to 4.3 percent
- Policymakers face calls for stronger stimulus measures

Outlook remains cautious

While China’s economy remains on a growth path, the Q3 data underscores the challenges ahead. With structural issues in real estate and external pressures mounting, the government’s next steps will be crucial in determining whether the 5 percent annual growth target can be met.

Sources: Reuters, CNBC, Economic Times