China’s gross domestic product (GDP), the world’s second-largest economy, grew by approximately 4.5% year-on-year in the fourth and final quarter of last year, ending in December, according to data released by the National Bureau of Statistics on Monday morning, January 19. This compares to 4.8% growth in the third quarter and matches market expectations, marking the slowest growth rate in three years. The slowdown was attributed to weaker domestic demand and investment. The economy still achieved 5% growth for the entire year, which is Beijing’s official target.

The unemployment rate remained unchanged from November at 5.1%, while expectations had risen to 5.2%. Retail sales rose by 0.9% year-on-year in December, compared to 1.3% growth in November, exceeding expectations but representing the weakest growth rate since December 2022.

Chinese industrial production grew by approximately 5.2% year-on-year in December, compared to 4.8% in November, surpassing expectations of 5.1%.

Investment in fixed assets, in turn, contracted by 3.8%, compared to a decline of 2.6% in November, while expectations were for a contraction of 3.1%, as investment in real estate development continued to decline with the real estate crisis continuing at a rate of 17.2% in 2025.