China posts 5.4% economic growth in Q1 as property sector slumps

Posted on April 22, 2025   |  

China’s GDP grew 5.4% in Q1 2025, supported by manufacturing and infrastructure growth despite a downturn in real estate.

Real estate development investment declined 9.9%, housing construction area dropped 9.4%, and new residential construction area fell 24%.

Manufacturing investment rose 9.1%, infrastructure increased 5.8%, and high-tech industries grew 6.5%, driven by strong gains in information services, aerospace, and computer equipment.

Construction output rose 2.5%, but the housing sector remained weak, with commercial housing for sale rising 5%, indicating slow market absorption.

Industrial production increased 6.5%, with equipment manufacturing up 11%, high-tech output up 10%, and new energy vehicle and industrial robot production surging 45% and 26% respectively.

Retail sales rose 5% year-on-year to 12.47 trillion yuan; online sales of physical goods increased 6%.

Communication devices, office supplies, and home appliances saw strong demand.

The consumer price index fell 0.1% and producer prices dropped 2.3%, indicating soft inflation pressures.

Urban unemployment averaged 5.3%, dipping to 5.2% in March.

Rural migrant worker numbers rose 1.1% and their average monthly income climbed 3.3%.

Total trade reached 10.3 trillion yuan, with exports up 6.9% and imports down 6%.

Per capita disposable income rose 5.6%, rural incomes outpaced urban, narrowing regional income gaps.