China maintains second quarter GDP growth despite US tariff pressure
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The news: China’s gross domestic product for the second quarter of 2025 has come in higher than expected despite ongoing US tariff pressure but new home prices hit their fastest rate of decline in eight months.
The numbers: The National Bureau of Statistics of China reported that GDP in the second quarter was up 5.2% year-on-year, which is higher than expectations of 5.1%, according to a Reuters poll.
But new home prices fell 0.3% in June from May and the value of secondhand homes fell 0.6%, marking the biggest fall since September 2024.
Growth was largely steady compared to the 5.4% rate reported for the first quarter of the year and puts the first half growth rate at 5.3%.
The total value of imports and exports of goods increased in the first half of the year by 2.9% year-on-year, with exports increasing by 7.2% and imports falling by 2.7%. Alongside this, the total value added of industrial enterprises in the first half of the year grew by 6.4% year-on-year.
In June, the value added by industrial enterprises grew by 6.8% year-on-year and was up by 0.5% month-to-month. Retail sales growth, however, grew by 4.8% year-on-year and was down 0.2% month-on-month.
The context: The Chinese property sector has been in a prolonged slump and has been facing deflationary pressures.
Chinese exporters have been trying to rush products into the US before the scheduled 12 August expiration of a temporary pause on new levies and the deadline for reaching a trade deal.
The sources: National Bureau of Statistics of China, Bloomberg, Reuters, Reuters
